The new owners of Schutt Sports Inc. have agreed to keep 200 to 300 employees on the job for at least a year after a Delaware bankruptcy court approved a $32.5 million winning bid for the Litchfield sports-equipment manufacturer.
The sale to Platinum Equity, a private investment company based in Los Angeles, was approved late Wednesday. Schutt is one of the largest employers in Litchfield, which is about 45 miles south of Springfield.According to a company website, Platinum has completed nearly 100 acquisitions worth $27.5 billion since 1995. Rawlings Sporting Goods submitted a bid of $36 million, claiming improper bidding procedures.
Chief Judge Kevin Carey of the U.S. Bankruptcy Court in Delaware ruled the Platinum bid was in the best interest of the company and debtors.
Schutt filed for bankruptcy last summer after a jury awarded $29 million to rival Riddell Inc. in a patent infringement lawsuit. Riddell claimed Schutt infringed on a concussion-reduction design in football helmets.
Company executives also cited the economy and a decline in school purchases of sports equipment.
In addition to football helmets, Schutt makes soccer equipment and is a supplier to Major League Baseball.
Under terms of the sale, Platinum agreed to keep employees at plants in Litchfield and Salem for at least a year and at a plant in Pennsylvania for at least three months.
