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Gunmaker Remington Set To File For Bankruptcy

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By Kate Gibson MoneyWatch February 12, 2018, 4:46 PM

Remington set to file for bankruptcy

However, with customers less concerned that their ability to accumulate guns might be cut off, retailers that had built up inventory anticipating a Clinton presidency found themselves with lots of unsold guns on their hands.

Gunmakers including Remington Outdoor took a hit, and the Madison, North Carolina-based company on Monday said in a statement that it intends to file for Chapter 11 bankruptcy protection after reaching an accord wit lenders ha grnts them ownrship of the 200-year-old copany.

 

"Difficult industry conditions make today's agreement prudent," Jim Geisler, executive chairman of Remington said in the release.

A preset reorganization will be filed with the federal bankruptcy court in Delaware that will allow Remington to continue operating while it works out a strategy to pay back creditors and get the business back on its feet.

Holders of Remington's $550 million term loan will get an 82.5 percent equity stake in the gunmaker, and third-lien note holders will get 17.5 percent of Remington and four-year warrants for a 15 percent stake, the gunmaker's statement said. Creditors will also grant a $100 million debtor-in-possession loan to keep Remington running through bankruptcy.

Beyond presidential politics, the Remington brand drew unwanted attention as well as lawsuits after the 2012 slayings of 20 children and six adults at an elementary school in Newtown, Connecticut, in which the gunman's weapons included a Remington Bushmaster assault rifle.

Cerberus Capital Management, which holds a controlling interest in Remington, confirmed the bankruptcy plan, first reported by Reuters last week, but declined further comment. Cerberus said questions should be directed to the company. Remington did not immediately respond to a call requesting comment.

While Remington is privately held, shares of publicly traded gunmakers fell on Monday, even as the overall market gained. Sturm, Ruger (RGR) fell 2.5 percent, and American Outdoor Brands (AOBC) also lost ground, off 1.3 percent.                                                                                                                                                                                                                                                                                                                      SEE VIDEO REPORT ;      https://www.cbsnews.com/news/remington-set-to-file-for-bankruptcy/

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Hunter is correct:  Remington went through several ownership changes, plus acquisitions.  Bean counters took profits and quality out of the products, introduced products that were not needed in the present market (Remington pistols, then acquiring Para to save the sinking Remington line), took a quality company in Marlin, relocated it and ran it into the ground.

Personally, the acquirers of Remington got what they deserved and maybe now, out of the ashes, a better company will grow.


The lamps are going out all across America and we may never see them lit again in our lifetime....

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Gun maker Remington files for bankruptcy

Firearms manufacturer Remington Outdoor Company has filed for bankruptcy protection in the face of falling sales and lawsuits stemming from the 2012 Sandy Hook Elementary School shooting, the Wall Street Journal reported Sunday night.

 
 

According to the Journal, Remington announced that it would file for Chapter 11 last month but the actual filing was delayed after the Feb. 14 shooting at Marjory Stoneman Douglas High School in Parkland, Fla. that killed 17 people.

The paper reported that Remington officials plan to hand over the reins to its creditors in exchange for writing off most of the company's debt. Cerberus Capital Management LP bought Remington for $118 million in 2007, assuming $252 million in debt in the process.

Cerberus later formed a holding company called the Freedom Group Inc., consisting of Remington and other firearms manufacturers -- including Bushmaster, which Cerberus had purchased in 2006.

WEAPON MAKERS FLEE LIBERAL TOWNS AND HEAD TO GUN-FRIENDLY STATES

The Journal reported that the gun industry is facing low demand and high stock after Donald Trump's unexpected election to the presidency in 2016. According to the paper, firearms manufacturers boosted output in the run-up to the election, expecting that a Hillary Clinton victory would lead to a boost in sales ahead of tighter gun laws.

 

In 2016, families of the Sandy Hook victims filed a wrongful-death suit against Remington, claiming that it had negligently marketed "military-style" weapons to younger demographics -- namely, 20-year-old Sandy Hook gunman Adam Lanza.

A trial judge dismissed the initial lawsuit, but the plaintiffs appealed to the Connecticut Supreme Court, which is considering the matter.

Katie-Mesner Hage, an attorney with Koskoff Koskoff & Bieder, which represents Sandy Hook families in their lawsuit against the gun manufacturer said in a statement that “We do not expect this filing to affect the families’ case in any material way.”

Founded in 1816, Remington is America's oldest gun maker.

Click for more from The Wall Street Journal.

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On 2/13/2018 at 10:51 AM, Ignatius said:

Hunter is correct:  Remington went through several ownership changes, plus acquisitions.  Bean counters took profits and quality out of the products, introduced products that were not needed in the present market (Remington pistols, then acquiring Para to save the sinking Remington line), took a quality company in Marlin, relocated it and ran it into the ground.

Personally, the acquirers of Remington got what they deserved and maybe now, out of the ashes, a better company will grow.

Gotta love those CEO'S.


       THE WINDMILL IS LIBERALISM.

       MY QUEST----------REMOVE LIBERALISM FROM THE FACE OF THE EARTH.

                                      ALONG WITH EXPOSING THE TPD FOR WHAT IT REALLY IS.

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29 minutes ago, fedup said:

Gotta love those CEO'S.

Hey-be careful with those categorizations!


The lamps are going out all across America and we may never see them lit again in our lifetime....

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16 hours ago, Ignatius said:

Hey-be careful with those categorizations!

Giggle. 🙃


       THE WINDMILL IS LIBERALISM.

       MY QUEST----------REMOVE LIBERALISM FROM THE FACE OF THE EARTH.

                                      ALONG WITH EXPOSING THE TPD FOR WHAT IT REALLY IS.

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I would just like to see Marlin (now owned by Remington) return to the same quality levels and styling, of several decades ago.  

Let's see, Remington also owns Bushmaster and Para, though I don't know if Para's are still made-a great pisto maker folded into the failing Remington 1911 efforts.


The lamps are going out all across America and we may never see them lit again in our lifetime....

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