In January 1999, the company filed for Chapter 11 bankruptcy and sold its European division to Husqvarna AB. In October 1999, its North American operation was acquired by the Taiwanese company Jenn Feng Industrial Co. Jenn Feng added electric power tools and pressure washers to the product line.
In March 2003, MTD Products signed a distribution and licensing agreement with Jenn Feng in which MTD would exclusively produce McCulloch products in North America.
In March 2008, Husqvarna acquired the outdoor products division of Jenn Feng, gaining access to the McCulloch brand in the North American market. McCulloch is since a brand within the Husqvarna Group.