BREAKING: Russian "Molot" is Bankrupt and will be Sold -The Firearm Blog

According to Russian newspaper “Kommersant“, Russian firearms manufacturer “Molot” is announced to be sold. The famous arms plant, which is well known in the USA by its “VEPR” brand became bankrupt five years ago. Since then it’s been under control of a bankruptcy managing company.

The premises, equipment and intellectual property will all be auctioned as a single lot. According to the bankruptcy manager, the value of mentioned assets is 1.5bln rubles, which is roughly equal to $26 million. However, that sum won’t cover the debts of the company, which is 2.4bln rubles ($41 million). The number of eligible companies to take part in the auction is limited and it will be hard to find a buyer. In order to participate in the auction, a company must have a firearms manufacturing license and be able to keep the company running after the acquisition. The latter is a requirement to ensure that the company will keep manufacturing its products among which there are Russian government contracts, too. Russian financial analysts and defense specialists say, that right now only Kalashnikov Concern is truly capable of buying the Molot.

Vepr 12

The assets of Molot include 91 buildings, 12,890 pieces of equipment and machinery, 13 patents, 16 registered brands etc.

The initial bankruptcy process started as a result of a lawsuit initiated by the metal supplier of Molot in 2012. Also, the lack of sufficient amount of government contracts, the decrease of civilian market sales and problems with exporting eventually made the company bankrupt.

In case if the company ceases its operations, it will be disastrous for the town it is located in (Vyatskie Polyani). Molot has about 3500 employees and it is the main employer of the town.

Many thanks to Luke Williams for the tip!

The Firearm Blog

BREAKING: Russian “Molot” is Bankrupt and will be Sold

Hrachya H