Remington Bankruptcy

[Tucker301]

https://www.bloomberg.com/news/arti...on-will-cede-control-to-lenders-in-bankruptcy


For two centuries, it has been a totem of America’s gun culture -- a name emblazoned on frontier flintlocks and U.S. Army .45s.
But on Monday Remington Outdoor Co., which traces its history back to 1816, said it would file for bankruptcy protection, succumbing to a slump in business worsened by, of all things, a president who has steadfastly supported Americans’ right to bear arms.
The bankruptcy is a blow to the private-equity mogul Stephen Feinberg, who has been a prominent supporter of President Donald Trump. Feinberg’s firm, Cerberus Capital Management, acquired Remington in 2007 and subsequently saddled it with almost $1 billion in debt. The Chapter 11 bankruptcy filing will let Remington stay in business while it works out a plan to turn around the company and pay its creditors.
Remington has been around for over 200 years, dating back to 1816 when Eliphalet Remington II worked with a local gunsmith to create a flintlock rifle. It received its first contract in 1845, manufacturing 5,000 “Mississippi” rifles for the U.S. military. Today, the company employs 3,500 people and is among the largest American manufacturers of ammunition and firearms.

 

[diverdon]

I wondered how they planed to pay for shutting down the Ilion NY factory and opening a brand new factory. It turns out that they did not intend to pay for it but rather planed to stick creditors with the bill.

That is too bad, they have built a lot if fine guns and been an important part of American History. The Brand will not go away but it will no longer be part of that history after the assets are washed through chapter 11.

 

[The King]

I'm sure a Chinese company will buy it and churn out shit guns with Remington stamped on them.

The only question is if those shit guns will be made here by Remington employees on Remington machinery, or if the Chinese will decide to up their game and have the guns made by folks with a hand file in Guatemala.

I'm sad Remington got old and died, but I'm not sad that we no longer have to yell at them every morning to take their medication and change their diapers every time they drop a QC stinker on us.

 

[diverdon]

I'm sure a Chinese company will buy it and churn out shit guns with Remington stamped on them.

The only question is if those shit guns will be made here by Remington employees on Remington machinery, or if the Chinese will decide to up their game and have the guns made by folks with a hand file in Guatemala.

I'm sad Remington got old and died, but I'm not sad that we no longer have to yell at them every morning to take their medication and change their diapers every time they drop a QC stinker on us.

I believe that it will remain an American company, Chapter 11 usually means the same owners and managers with the previous debt holders getting a share of the equity in exchange to some of the value of their bonds.

If I am wrong it will not be the first time.

 

[The King]

Then we should all say a prayer for the debt holders - they are trading a promise of American dollars for actual ownership of a piece of Remington.

This is like your buddy letting you know he used the money you loaned him on his new meth lab, and while he can't pay you back here is a 5 gallon bucket of extremely questionable crystal meth. And since its worth like 100 times what you loaned him, he's gonna need you to pay him $96,000 on top of it all.

 

[diverdon]

On top of that you get a judge ordering you to take the deal. In a society of law the bondholder has the option to liquidate the company and seize the assets, but the going business is usually worth more than the assets at auction.

 

[Maser]

Well, when they start liquidating their stock of 700s, I'll be there for a SPS Varmint!

 

[demolitionman]

Pretty sure most of us on the board seen this one coming. Still sucks. Sure wondering what the silver lining will be for long gun enthusiasts.

 

[man32ahan]

Was strongly considering trying out their new PCR rifle when available, but I’m wary now.

 

[Waorani]

"Gun ownership has become more concentrated as a result, with a small sliver of gun owners owning a growing segment of America’s firearms inventory, according to the Harvard Injury Control Research Center. These gun buyers have come to be known as “super owners” and one study, conducted by Harvard and Northeastern universities, concluded that about half the guns in America are owned by only 3 percent of the adult population, with an average of 17 firearms each."

Wonder what they'd call a lot of folks here?

 

[diverdon]

"Gun ownership has become more concentrated as a result, with a small sliver of gun owners owning a growing segment of America’s firearms inventory, according to the Harvard Injury Control Research Center. These gun buyers have come to be known as “super owners” and one study, conducted by Harvard and Northeastern universities, concluded that about half the guns in America are owned by only 3 percent of the adult population, with an average of 17 firearms each."

Wonder what they'd call a lot of folks here?

Surely there are not people who own only 17 guns? Perhaps they mean 17 of each type of gun.