• "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"

Remington Returns to Bankruptcy Blaming Falling Gun Sales

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
31,992
Likes
45,444
#1
for the second time in 2 years, Remington files for Chap 11

after a potential deal to sell collapsed,

more to come


Remington Returns to Bankruptcy Blaming Falling Gun Sales

Rick Green and Steven Church 2 hrs ago


Remington Returns to Bankruptcy Blaming Falling Gun Sales


(Bloomberg) -- Remington Outdoor Co. filed for bankruptcy for the second time in two years with plans to sell the 200-year-old maker of firearms.


The company said reduced gun sales prevented it from making money even after restructuring its finances in its first bankruptcy. Remington had $437.5 million in sales last year, about half the business it did in 2016, according to court papers filed in Decatur, Alabama.

The company owes various lenders more than $250 million, including a $12.5 million debt to Remington’s home town of Huntsville, Alabama, which put up a loan to help upgrade a manufacturing plant there.

The Chapter 11 filing allows the company to keep operating while it devises plans to turn around the business and pay its creditors.

Remington will continue its hunt for a buyer, which began months before seeking court protection from creditors. The company landed one potential offer for all of its assets, but the unnamed suitor delayed making a final decision after the deal became public, company chief executive Ken D’Arcy said in court papers. The Wall Street Journal reported that the company held talks with the Navajo Nation about a sale, but those discussions fell apart.

D’Arcy said the company is continuing to talk to its unnamed potential buyer as well as others.

Earlier Filing
Remington went bankrupt before in February 2018. It was felled by too much debt and overstocked gun dealers, who were left with unsold weapons after the surprise loss of Hillary Clinton -- an advocate of gun control -- to Donald Trump in the 2016 election. Cerberus Capital Management had acquired Remington in 2007, and the firearms and ammunition giant accumulated nearly $1 billion in debt.

It emerged from bankruptcy in May 2018, minus more than $775 million of debt, with ownership transferred to senior lenders. This time, Remington is heading back to court even as gun sales revive amid civil unrest in the U.S. The company said it couldn’t take advantage of increased demand because the pandemic disrupted its manufacturing.

https://www.msn.com/en-us/finance/c...kruptcy-blaming-falling-gun-sales/ar-BB17gdKp
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
Midas Member
Midas Supporter
Joined
Apr 4, 2010
Messages
14,931
Likes
20,502
#3
Remingtons are NOT what they used to be.
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Midas Supporter ++
GIM Hall Of Fame
Joined
Apr 2, 2010
Messages
19,541
Likes
37,951
Location
ORYGUN
#4
Remington has a bad reputation for a trigger failure that could have been fixed, for a NICKLE, 40/50 years ago & didn't do it.
Gun sales are thru the roof.
It came home to bite them in the ass !
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Midas Supporter ++
GIM Hall Of Fame
Joined
Apr 2, 2010
Messages
19,541
Likes
37,951
Location
ORYGUN
#5
Remingtons are NOT what they used to be.
When I modified 2 of mine to Ackley Improved, I replaced the "faulty" trigger. with a Timney Trigger ! I love it !!!:2 thumbs up::finished::hunt:
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
Midas Member
Midas Supporter
Joined
Apr 4, 2010
Messages
14,931
Likes
20,502
#6
When I modified 2 of mine to Ackley Improved, I replaced the "faulty" trigger. with a Timney Trigger ! I love it !!!:2 thumbs up::finished::hunt:
But Remington KNEW it and did nothing but sell the name. Quality was / went down over a very inexpensive part.
You should not have had to buy new triggers when you considered what you paid for an OTB Ready.
 

Unca Walt

Midas Member
Midas Member
Site Supporter ++
Joined
Mar 15, 2011
Messages
11,642
Likes
19,522
Location
South Floriduh
#7
I think the Remington guy was also on the Board of Directors for Coca-Cola. His idea to change the formula...
 

TAEZZAR

LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH
Midas Member
Midas Supporter ++
GIM Hall Of Fame
Joined
Apr 2, 2010
Messages
19,541
Likes
37,951
Location
ORYGUN
#8
But Remington KNEW it and did nothing but sell the name. Quality was / went down over a very inexpensive part.
You should not have had to buy new triggers when you considered what you paid for an OTB Ready.
Naw, the Timney is light years ahead of the Remington trigger, even if it did work. :finished 2::finished 2::finished 2::hunt:
 

Zed

The Bullish Bear.
Midas Member
Site Supporter ++
GIM Hall Of Fame
Joined
Mar 30, 2010
Messages
17,684
Likes
17,966
Location
Watching the Sideshow!
#9
WOW... I'd have thought that would be one industry that is doing OK today.
 

Usury

Site Supporter
Site Supporter
Platinum Bling
Joined
Apr 1, 2010
Messages
4,758
Likes
4,300
#11
Cerberus....f****ing hedge funds. I can’t help but feel that most are run by greedy incompetent bastards with too much incentive to cook the books and/or make short-sighted decisions to make themselves look good and get big bonus payouts. All at the expense of their investors and the businesses they’re running.
 

<SLV>

Platinum Bling
Sr Site Supporter
Platinum Bling
Joined
Apr 1, 2010
Messages
4,865
Likes
6,862
#12
Cerebrus gutted Chrysler IIRC.