Cheyenne Gun Trade on Remington Bankruptcy

BP_Remington

Remington, one of nation's top gunmakers, files for bankruptcy

According to company history, Remington II "handcrafted his first rifle barrel at his father's forge, and carried it to Utica to have a local gunsmith fabricate it into a flintlock rifle".

The filing came after a weekend of marches across the US seeking tighter laws to fight gun violence.

But before anyone starts popping champagne over this, filing for bankruptcy doesn't necessarily mean that Remington is going anywhere.

Remington plans to keep on making guns.

Stephen Feinberg hasn't had a happy time playing with guns. But Hillary Clinton's defeat erased those fears, leaving retailers stuffed with unsold inventory. The company has seen falling sales for years, and the industry overall also saw declines last year. But due to sliding sales and mounting debt, the company announced over the weekend that it was filing for bankruptcy. It plans to win bankruptcy court approval of the restructuring by May 3. The company plans to reduce its debt by $620 million through the Chapter 11 process. They were the biggest employer in Ilion, New York for ages and everyone either had a family member who worked there or was friends with one.

The Madison, North Carolina-based manufacturer laid off 122 workers at the Mohawk Valley plant in March 2017 and another 55 in September.

Creditors will also provide a $100 million debtor-in-possession (DIP) loan to finance operations throughout bankruptcy. Third-lien note holders will take 17.5 percent of Remington and four-year warrants get a 15 percent stake. Current equity will be canceled.

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Remington's reputation took a hit in 2012 after it was confirmed that Adam Lanza used one of the company's Bushmaster XM15-E2S guns in the CT massacre in which he killed his mother and 26 children and educators at Sandy Hook Elementary School. The private equity powerhouse still owns DynCorp International that it bought in a $1.7 billion buyout - however, it too is struggling.

Cerberus Capital Management, which acquired the company in 2007 as gun sales began to boom, tried to sell it less than a week after the Sandy Hook shooting.

Remington made this Bushmaster that was used in the 2012 mass shooting of children and adults in Newtown, Connecticut. He left the company to his three sons, who became major suppliers to the Union Army.

The company also settled a class action lawsuit a few years ago regarding allegations of defective rifles.

The rallies were organized by the prominent, student-led coalition of survivors of the school shooting in Parkland, Florida, on February 14 that galvanized a generation to mobilize on the issue of gun control. Vista Outdoor's brands in the outdoor and cycling space include Bell, Blackburn, Bollé, Bushnell, CamelBak, Camp Chef, Giro and Jimmy Styks.

Remington produces one of the most infamous weapons in the world, the Bushmaster AR-15. It now employs 3,500 people and is among the largest American manufacturers of ammunition and firearms.

Remington has reassured our office that the Chapter 11 filing is exclusively for the objective of restructuring debt to equity.

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