In what should not be a shock to most anyone paying attention, iconic firearms manufacturer Remington announced a bankruptcy filing on Sunday, passing control to lenders – a move that will wipe away most of the companies debt. We hesitated in bringing you the story earlier since we have covered Remington’s financial troubles numerous times in just the last few months. However, ultimately the court filing in Delaware is a significant event that requires a notification to our readers,
Below you will find links to TFB’s previous stories regarding Remington’s going concern as well as a link to the full story published in TIME.
Remington Outdoor Co., the 200-year-old maker of rifles, handguns and bullets controlled by Cerberus Capital Management, filed for bankruptcy, after the election of a “true friend” to the White House ironically wound up stifling sales.
The chapter 11 filing in Delaware bankruptcy court Sunday comes with a revised plan to eliminate $620 million in debt, pay most creditors in full, and hand over most of the company to a group of lenders. Remington, which makes weapons for military, law enforcement, and hunting customers, had already outlined a plan on Feb. 12 to file for bankruptcy and give control to lenders including Franklin Resources Inc. and JPMorgan Asset Management.
The filing came after a weekend of marches across the U.S. seeking tighter laws to fight gun violence. Remington said in court filings that its efforts to finance a turnaround were complicated by parties who were reluctant to lend to a gunmaker. After approaching 30 potential lenders, financial adviser Lazard Freres & Co. found “the vast majority” indicated “they were reluctant.” Eight parties who entered into further discussions later declined, and one outside lender who had agreed to provide a $100 million bankruptcy loan changed its mind, according to the filing.
Remington’s fortunes took a hit last year after the election of Donald Trump, a self-proclaimed “ true friend” of the gun industry. Gun enthusiasts traditionally stock up on firearms at times when political winds suggest tighter gun control lies ahead. But Hillary Clinton’s defeat erased those fears, leaving retailers stuffed with unsold inventory. Read the full story in TIME.