April 21, 2018

Remington, one of America's oldest gun makers, files for bankruptcy

27 March 2018, 03:14 | Kenneth Drake

Legendary Gun Manufacturer Remington Files For Bankruptcy

Bushmaster AR-15 gun maker Remington files for bankruptcy

Remington Outdoor, an American gun maker, has filed for Chapter 11 bankruptcy protection.

Remington Arms Co. filed for Chapter 11 bankruptcy in a DE court on Sunday to carry out a debt-cutting deal with creditors amid mounting public pressure for greater gun control. The company plans to reduce its debt by $620 million through the Chapter 11 process.

Remington probably isn't going anywhere, despite the bankruptcy filing.

A Remington-manufactured Bushmaster AR-15-style rifle was used in the Sandy Hook shooting that killed 26 people - 20 first-graders and six school staffers - in 2012.

Remington Outdoor went to court in DE as it continues efforts to complete a deal that will see its private equity owner, Cerberus, relinquish control to creditors. Protestors are seeking stronger gun restrictions after 17 were killed in a massacre at Marjory Stoneman Douglas High School in Parkland, Fla.

Remington also fell victim to a wider trend which saw gun sales rocket as Second Amendment fans feared ownership rights would soon be curtailed.

The election of Trump-who pitches himself as a friend of gun owners-was actually bad for business.

Remington Outdoors is the oldest firearm manufacturer in the United States. But half of those guns are owned by only 3 percent of the population. The company has refused to say whether the bankruptcy filing - which it first signaled last month - will affect the settlement. Soon after, "Cerberus dropped plans for an initial public offering of what was then known as the Freedom Group". With Trump in office, it's hard for gun manufacturers to persuade people who already own guns that they have to buy more. "Rather, he said, it's a response to the fact that grief in the wake of mass shootings rarely inspires lasting action to prevent firearms from falling into the wrong hands", Siegel reports.

The firm is also looking into creating new investment funds that exclude gun makers and retailers.

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