Remington to file for bankruptcy

[John A.]

https://www.reuters.com/article/us-remi ... SKBN1FT04C

excerpts:
(Reuters) - Remington Outdoor Company Inc, one of the largest U.S. makers of firearms, has reached out to banks and credit investment funds in search of financing that will allow it to file for bankruptcy

The move comes as Remington reached a forbearance agreement with its creditors this week following a missed coupon payment on its debt, the sources said. The company has been working with investment bank Lazard Ltd (LAZ.N) on options to restructure its $950 million debt pile, Reuters reported last month.

Credit rating agencies have warned that Remington’s capital structure is unsustainable given its weak operating performance and significant volatility in the demand for firearms and ammunition.

[TexasArmor84]

I seen this doesn’t look good for Remington. I don’t think they will go away thought they will have to liquidate things. Maybe sell some of there branch companies


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[John A.]

Yeah, they have a lot of branch companies.

AAC suppressors

Barnes bullets

tapco

Harriet and Richardson

New England Firearms

Bushmaster

DPMS

And there are probably others that are escaping me at the moment.

Maybe that was some of the reason behind their big barrel sale a month or so ago. Liquidating some inventory.

I hope they can pull out of the nosedive, but in all fairness, it would take a lot. And would require some restructuring to give better quality products too. You can look anywhere on the web that you want and you'll find complaints about the quality of new guns. Especially the 700 and you may even see some of that mentioned on this forum occasionally

It's rather apparent that Cerberus investors just wanted to milk the market for everything they could get putting profits ahead of quality.

While I agree that the firearm industry as a whole has taken a hit since the elected idiots are constantly calling for bans, I think we all know that was artificially inflated sales figures due to fear mongering and the market always corrects itself eventually. This is certainly no big surprise to anyone that knows anything about the firearms industry.

[Scorpion8]

Bankruptcy anymore is not such a bad thing, and major companies use it all the time for protection from creditors while they re-organize. Remington has such a valuable brand that someone will keep them afloat.

[John A.]

Sadly though, a lot of companies (just like remingtons current owners-cerberus) will run up the debt and milk the company for everything they're worth like a hungry dog eating out of the bowl and leave a mess.

They're not in it because they're gun guys. They're in it because during the last 8 years the firearm market was booming. Now, it's "bust" so, like the gold miners of old, they're packing up and moving to somewhere or something else.

I would never agree to purchase any company when I was still on the hook for the debt the prior company ran up.

No way.