Remington, Centuries-Old Gun Maker, Files for Bankruptcy as Sales Slow.

[elleng]

Last edited Mon Mar 26, 2018, 12:25 AM - Edit history (1)

Imagine THAT!

'Remington Outdoor, one of the oldest firearm manufacturers in the United States, filed for bankruptcy protection on Sunday amid mounting debt and declining sales.

The gun maker had said last month it was nearing a bankruptcy filing, which it made on Sunday in federal bankruptcy court in Delaware. In its Chapter 11 filing, Remington said it had between $100 million and $500 million in debt and would continue to operate while under bankruptcy protection. It estimated that its assets were between $100 million and $500 million.

Remington did not immediately respond to a request for comment on Sunday evening.

The company, which was founded in upstate New York in 1816 but is now based in North Carolina, was acquired in 2007 by the private equity firm Cerberus Capital Management for $118 million. The firm rolled it up with other gun manufacturers, including the maker of the Bushmaster rifle, into a conglomerate called Freedom Group. . .

20 children and six adults were killed in 2012 at Sandy Hook Elementary School

in Newtown, Conn., public outrage zeroed in on Remington after the authorities reported that the gunman had used an AR-15-style rifle made by the company. Families of the Sandy Hook victims sued Remington, saying the manufacturer of the military-style assault rifle used by the gunman bears some responsibility for the attack.

Some investors then divested from the company, and Remington borrowed heavily during that time, including to buy out investors who wanted to leave. But the prospect of imminent gun control legislation helped Remington sales surge 36 percent, to $1.3 billion in 2013, according to Moody’s.

The company expected a similar bump in sales if Hillary Clinton had won the presidential election in 2016 because of her possible pursuit of gun control legislation. But in the first nine months of Donald J. Trump’s presidency, Remington’s sales were down 27.5 percent.

Last month, Remington announced that its lenders had agreed to cut its $948 million debt load by $700 million in exchange for an ownership stake in the company.'>>>

https://www.nytimes.com/2018/03/25/business/remington-bankruptcy-guns.html?

[hibbing]

1. Do they not make any "assault type rifles"? n/t

[aikoaiko]

6. They were very late to the AR15 market.

Their bread and butter were hunting rifles and that market is drying up. Plus they had a flawed safety problem.

[Takket]

2. how the fuck do they have that much debt?

people were buying guns left and right during the entire obama presidency!

[Doodley]

3. Borrowing money to pay the NRA to fund the GOP.

[elleng]

4. 'After 20 children and six adults were killed in 2012 at Sandy Hook Elementary School

in Newtown, Conn., public outrage zeroed in on Remington after the authorities reported that the gunman had used an AR-15-style rifle made by the company. Families of the Sandy Hook victims sued Remington, saying the manufacturer of the military-style assault rifle used by the gunman bears some responsibility for the attack.

Some investors then divested from the company, and Remington borrowed heavily during that time, including to buy out investors who wanted to leave. But the prospect of imminent gun control legislation helped Remington sales surge 36 percent, to $1.3 billion in 2013, according to Moody’s.

The company expected a similar bump in sales if Hillary Clinton had won the presidential election in 2016 because of her possible pursuit of gun control legislation. But in the first nine months of Donald J. Trump’s presidency, Remington’s sales were down 27.5 percent.

Last month, Remington announced that its lenders had agreed to cut its $948 million debt load by $700 million in exchange for an ownership stake in the company.'

[blake2012]

5. people aren't buying Remington single shot rifles anymore, I guess.

When I was a 12 year old, I had a Remington pump action .22. I sold quite a few Remington shotguns as well when I was a young guy working in WalMart sporting goods.

Much of the gun spend has moved toward assault rifles and handguns.

[oasis]

7. $500 million in debt? They must've had Jared Kushner's financial adviser.

[area51]

8. When I hear the name Remington,

I think of typewriters.

[safeinOhio]

9. Private Equity group?

Sounds like someone raiding their assets. I love it.

[hack89]

10. Gun makers are praying the Dems control Congress next year

They need Dems in power to sell guns.