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Old 02-13-2018, 07:24 AM   #1
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Remington - Chapter 11

MADISON, N.C. Remington, the gunmaker beset by falling sales and lawsuits tied to the Sandy Hook Elementary School massacre, has reached a financing deal that would allow it to continue operating as it files for Chapter 11 bankruptcy protection.

The maker of the Bushmaster AR-15-style rifle used in the Connecticut shooting that left 20 first-graders and six educators dead in 2012, said Monday that the agreement with lenders will reduce its debt by about $700 million and add about $145 million in new capital.

The company was cleared of any wrongdoing in the shooting, but investors repulsed by the massacres distanced themselves from the company's owner, investment firm Cerberus Capital Management. Cerberus acquired the gun maker in 2007, just when gun sales began to skyrocket.

Firearm background checks, a reliable barometer of gun sales, have risen steadily for at least a decade.

That changed last year with the election of President Donald Trump, and it has taken a toll on the gun industry.


Gun sales spike on the election of candidates who are perceived to be more likely to pursue more stringent gun control laws, whether or not there is any truth in that perception.

The opposite has occurred since Trump was elected. He became the first sitting president to address the National Rifle Association in three decades, telling members at their annual meeting last spring that "You have a true friend and champion in the White House."

Firearm background checks declined faster in 2017 than in any year since 1998, when the FBI first began compiling the data.

While Remington is not a publicly traded company, shares in rival Sturm, Ruger & Co. slid almost 3 percent Monday. It's shares have fallen almost 14% this year.

Remington Outdoor Co., the nation's oldest gun maker, will attempt to file a prepackaged reorganization plan with the U.S. Bankruptcy Court of Delaware under Chapter 11 of the bankruptcy code.

The company, based in Madison, N.C., did not respond to attempts by The Associated Press to contact the company about the timing of bankruptcy procedures.
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Old 02-13-2018, 04:00 PM   #2
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I suspect one of two causes;

1. gross mismanagement (not likely), or

2. Cerberus cannibalizing the profits.
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Old 02-13-2018, 05:14 PM   #3
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I was reading this story this morning. They aren’t the first gun company to file for bankruptcy. I’m sure Remington will be around for a long time. I have an 11-87 and my wife has a Compact 11-87 and both have been great shotguns. The 870 I purchased wasn’t so good.
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Old 02-13-2018, 05:15 PM   #4
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I read an article not too long ago touching on the drop in sales for most firearms mfg. When the majority party is not a threat to gun rights and ownership, apparently folks are not feeling pressed to snatch up firearms in case they might not be able to later. That was the part of this article I found most interesting. Mentioning some of what I had already heard about. Remington has been around forever, I hope they stay around.
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Old 02-13-2018, 05:21 PM   #5
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Originally Posted by Doons View Post
I read an article not too long ago touching on the drop in sales for most firearms mfg. When the majority party is not a threat to gun rights and ownership, apparently folks are not feeling pressed to snatch up firearms in case they might not be able to later. That was the part of this article I found most interesting. Mentioning some of what I had already heard about. Remington has been around forever, I hope they stay around.
I bet when the next Presidential election comes around sales will skyrocket.
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Old 02-13-2018, 09:24 PM   #6
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IMHO, Remington's problems are a firestorm of bad management -- excessive debt leverage taken on by Cerberus, customer service issues (you can't e-mail them, you have to call and wait, and wait) ill-advised and poorly timed acquisitions, the fiasco of the R51 (they basically exchanged or replaced every one, and the replacements keep going back (my experience), executive turn-over, etc. in addition to the recall of millions or bolt-action rifles, lawsuits, and market conditions. Latest report is that they wrote off $700 million in debt and got $148 million in working capital to operate in bankruptcy.
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Old 02-13-2018, 10:18 PM   #7
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Remington? Do they still make guns?

I just checked their home page, and there is NOTHING that strikes my fancy. Maybe they should have taken a look at what the big dogs were selling, and focus on that market.
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Old 02-14-2018, 06:34 AM   #8
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Originally Posted by RustyIron View Post
Remington? Do they still make guns?

I just checked their home page, and there is NOTHING that strikes my fancy. Maybe they should have taken a look at what the big dogs were selling, and focus on that market.
With all due respect RI, they are a Big Dog.... they are also the oldest of the US gun makers (est 1816). I think the comments about poor management are probably on point.

1. Sturm Ruger (1,714,097 Firearms mfg)
2. Remington Outdoor (1,409,129)
3. Smith & Wesson (1,342,698)
4. Sig Sauer (477,046)
5. O.F. Mossberg & Sons (444,319)
6. Savage (378,172)
7. Henry (300,312)
8. Glock (232,324)
.
.
13 Kimber (129,889)
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