Discussion in 'News & Announcements' started by Foxi, Feb 13, 2018.
But innovation was not the strength of this company.
When the vulture capitalists Cerberus took them over, I said to myself, "They're doomed". Took a few years but they fulfilled that prediction. For the employees sake, I hope they can get DIP financing long enough to be absorbed by a real firearms company.
Always the little guy that gets hurt.
dont they own other gun makers also?...
@spike.t Cerberus does but Remington basically owns itself. They were spun off as a separate financial entity when their original and prime investors bailed after Newtown and the company had to go in to debt to buy them out. They're saddled with that debt and insufficient income to service it. My bet is they'll go in a fire sale to another firearms company. The big banks don't want to touch anyone in the business.
Correct me if I’m in error, but as I recall Cerberus has the Freedom Arms division/group which consists of Remington, Bushmaster, DPMS, Marlin, and seems like it was Dakota Arms for their premium line.
I have read the Sandy Hook lawsuits are what financially strapped the company even though they were found to be not responsible. It is interesting to me that a suit can happen against a firearm company, but not a cellphone company for an accident killing others while texting, nor an auto company for accidents by reckless drivers, nor pressure cooker companies for bombs made of them, etc, etc.
I’m sure some of you are lawyers, but IMO a product is an inanimate item not responsible for a human’s misuse of it. Only stupid or sick is responsible. JMO
Somebody will buy them at the fire sale price if for nothing else but the name.
Blood sucking lawyers start to whisper in the ears of the victims family. Who makes money in the end? The Lawyers. People started to sue Mandalay Bay after that tragedy. A litigation crazy society that is always looking to profit by laying blame where it doesn't belong.
February 12, 2018: 8:38 PM ET
Remington, one of the oldest and most well-known gun companies in the world, plans to file for Chapter 11 bankruptcy protection.
The plan would allow Remington Outdoor Company to stay in business while restructuring its debt. The plan allows for Remington to reduce its debt by $700 million and contributes $145 million of new capital into its subsidiaries, according to the company.
Remington said in a statement that its operations "will not be disrupted by the restructuring process."
"Payments to trade partners, employee wages and other benefits, support for customers, and an ongoing high level of service to consumers will continue without interruption," it said.
Remington is owned by the private equity firm Cerberus Capital Management. Cerberus will give up that ownership once restructuring is complete, a spokesman said Monday.
Related: Trump's presidency has been bad for gun sales
Remington, which is headquartered in North Carolina and has a sprawling factory in Ilion, New York, has faced legal trouble in recent years.
The company settled a class action lawsuit regarding allegations of defective rifles a few years ago. It has also been sued because of the mass shooting in 2012 at Sandy Hook Elementary in Newtown, Conn. The company produces the Bushmaster rifle used in that shooting.
Related: In this New York town, guns mean jobs
The gun industry, which also includes publicly traded companies like American Outdoor Brands (AOBC), owner of the Smith & Wesson brand, as well as Sturm Ruger & Co. (RGR) and Vista Outdoor (VSTO), has experienced slumping sales since the election of President Donald Trump.
Gun sales surged to record levels in 2016, when Barack Obama was president and there were fears that Democratic candidate Hillary Clinton would implement gun controls.
When Trump, a Republican endorsed by the National Rifle Association, was elected, those fears were alleviated. But sales also dropped off.
And neither was management. Sadly.
I hate to see it, but been coming for a long time. One of the iconic American gun companies.
Oh man that's terrible news!
the European press also says, that Trump and his love for guns is the cause of the decline in revenue.
Under Hillary, all Americans would still have bought.
This crap is also believed here.
Trump isn't necessarily my favorite, but putting any bullshit in his shoes is what our press likes to do.
Colt,Winchester,Remington had problems long before DT.
Yep, FAKE NEWS. It's an epidemic in this country.
My friend owns a gun store and says sales are bad. He is just glad he didn't load up on expensive ar's which are selling cheap now.
Obama was the best gun salesman ever. Lol.
My FFL transfer guy/LGS is selling a lot of handguns, not many long guns. If you live in or near the concrete jungles, the market is still good.
Hmmm, wonder who will be acquiring BARNES
It is perfect for speculation. One rumour of some gun being banned or controlled and BOOM, the price doubles. Everyone calms down and the price tanks.
That's why there was such an ammo, and reloading supply shortage during Obama's term. He starts talking about big tax hikes on ammo, and everyone is scrambling for the store shelves.
Remington got dug into a deep hole. Declining sales coupled with lawsuits over trigger problems and Sandy Hook. They won't get a Government bailout like the Automobile manufacturers did.
Separate names with a comma.