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Last shot for Remington as gunmaker files for bankruptcy protection

Remington filed for Chapter 11 bankruptcy protection after two centuries in the gun manufacturing business. The country’s oldest gun maker has been struggling with falling sales, heavy debt as well as product liability issues. The company is said to be looking at an agreement that will reduce debt by $700 million and bring in $145 […]

March 26, 2018 2 min read
Market News

Remington filed for Chapter 11 bankruptcy protection after two centuries in the gun manufacturing business. The country’s oldest gun maker has been struggling with falling sales, heavy debt as well as product liability issues. The company is said to be looking at an agreement that will reduce debt by $700 million and bring in $145 […]

· March 26, 2018

Remington filed for Chapter 11 bankruptcy protection after two centuries in the gun manufacturing business. The country’s oldest gun maker has been struggling with falling sales, heavy debt as well as product liability issues. The company is said to be looking at an agreement that will reduce debt by $700 million and bring in $145 million of new capital.

As part of a liability settlement, Remington agreed to replace the triggers on millions of its Model 700 bolt-action rifles, and it is unclear what impact the bankruptcy will have on the settlement.

Gun companies have been seeing sales declines under the Trump administration as well as increasing backlash in the wake of several mass shooting incidents across the country.

Recently, several organizations severed ties with the National Rifle Association and calls to boycott companies that were associated with the NRA increased. This even brought down shares of tech giants like Apple (AAPL) and Amazon (AMZN) slightly.

Remington, whose assets and liabilities are both estimated to be in the $100 million to $500 million range, said it would continue operations during the bankruptcy proceedings.

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Cerberus Capital Management acquired Remington in 2007 and under the private equity firm, the gun manufacturer saw its sales boom briefly. The Sandy Hook school tragedy in 2012 led to severe criticism and divestments for the company.

Fear of gun regulation usually sends the sales and stock of gun companies rising, but under the current political scenario, there is less fear of gun control.

Some experts say that between the billions of dollars in investments, taxes and revenues, and the thousands of jobs involved, the gun industry is not likely to come to a standstill overnight. However, the increasing protests and boycotts could have some sort of an impact or change, and that could take these companies in a different direction.

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