Huffy Will Purchase Schwinn/GT Division

Huffy Corp., a maker of bicycles and scooters, agreed to buy Schwinn/GT Corp.’s cycling division for more than $60 million, and Schwinn/GT is seeking bankruptcy protection to complete the sale.

Schwinn/GT, owned by private equity firm Questor Partners Fund, said it will fire all of the cycling division’s 300 employees in anticipation of the sale. Boulder, Colo.-based Schwinn/GT sells bicycles under the Schwinn and GT brands.

Questor, which bought Schwinn in 1997 and combined it with GT Bicycles a year later, put the company up for sale in April. The Chapter 11 bankruptcy protection means other companies can submit bids for the cycling division. It’s the second filing since 1992, when the company sought protection after years of declining market share. Schwinn/GT’s fitness unit, which includes the Schwinn and Trimline brands, isn’t included in the sale.

Huffy shares fell 19 cents to $9.40 on the NYSE. The announcement was made after the close of U.S. markets.