UPDATE: THE INFORMATION IN THE POST IS INCORRECT AND HAS BEEN RETRACTED.
My sources tell me that about 20 members of Bushmaster’s senior staff have been quietly laid off. This follows the laying off of production staff that has happened twice in the last four months. I believe that the layoffs have not been to do with the economy but with the integration of Remington and Bushmaster. One example of Remington seemingly being the favorite son of the Freedom group would the be ACR debacle. Bushmaster’s pet project, the ACR, was handed to Remington Military Products Division to make it ready for marketing to the military at the expense and delay of Bushmaster civilian sales. I suspect we will see more consolidation of Freedom Group companies over the next year. Jim Shepherd wrote about the recent Marlin factory closure …
At this writing, it seems Marlin, Harrington and Richardson, New England Firearms and L.C. Smith- all Marlin brands -are destined for absorption into Remington’s existing manufacturing facilities in Ilion, New York. Such a move would maximize use of that facilities and consolidate manufacturing operations. Consolidation is another efficiency necessary to compete with imported products.
Although it’s purely speculation on my part, a consolidation move makes perfect sense if you’re demonstrating lean operating abilities as part of some sort of market capitalization move. Bankers and investors are quite fond of consolidated operations, especially if the company happens to represent numerous iconic brands.