Remington filing for bankruptcy

[Dirty D]

Remington set to file for bankruptcy​

https://finance.yahoo.com/m/39f102ad-d323-333b-b475-30f20825c5e0/ss_remington-set-to-file-for.html

Where's Hillary Clinton when the gun industry needs her? The Democrat's election loss to Donald Trump was cheered by the National Rifle Association and other gun lobbyists, given the current U.S. president's commitment to allowing unfettered access to firearms.
However, with customers less concerned that their ability to accumulate guns might be cut off, retailers that had built up inventory anticipating a Clinton presidency found themselves with lots of unsold guns on their hands.
Gunmakers including Remington Outdoor took a hit, and the Madison, North Carolina-based company on Monday said in a statement that it intends to file for Chapter 11 bankruptcy protection after reaching an accord with lenders that grants them ownership of the 200-year-old company.
"Difficult industry conditions make today's agreement prudent," Jim Geisler, executive chairman of Remington said in the release.
A preset reorganization will be filed with the federal bankruptcy court in Delaware that will allow Remington to continue operating while it works out a strategy to pay back creditors and get the business back on its feet.
Holders of Remington's $550 million term loan will get an 82.5 percent equity stake in the gunmaker, and third-lien note holders will get 17.5 percent of Remington and four-year warrants for a 15 percent stake, the gunmaker's statement said. Creditors will also grant a $100 million debtor-in-possession loan to keep Remington running through bankruptcy.
Beyond presidential politics, the Remington brand drew unwanted attention as well as lawsuits after the 2012 slayings of 20 children and six adults at an elementary school in Newtown, Connecticut, in which the gunman's weapons included a Remington Bushmaster assault rifle.
Cerberus Capital Management, which holds a controlling interest in Remington, confirmed the bankruptcy plan, first reported by Reuters last week, but declined further comment. Cerberus said questions should be directed to the company. Remington did not immediately respond to a call requesting comment.

While Remington is privately held, shares of publicly traded gunmakers fell on Monday, even as the overall market gained. Sturm, Ruger (​

RGR​

) fell 2.5 percent, and American Outdoor Brands (​

AOBC​

) also lost ground, off 1.3 percent.​

 

[vh20]

With the fall in quality of their bread and butter models (870, 1100, 11-87, 700, etc) maybe this will be a good thing that gets them to focus on putting out a quality product like they used to make.

 

[Strykervet]

Maybe buying a failing and poorly ran suppressor company wasn't a wise move?

Could be more of Obama's long term strategy: what he did it seems, looking back on it, was to undermine confidence in the market leading to wild speculation which, all of us know save those who probably work on Wall Street, leads to collapses. That's what all those rush buys over the last eight years amounted to it seems.

 

[sirhrmechanic]

On one hand, you can blame politics... and the Obama restrictions on banks, making financing and lines of credit difficult...

But Remington bet their company on bad AR15's, 1911's and following every trendy sales concept into flooded and crowded markets... VH20 hit it right on the head. Quality traditional firearms... and they would be fine. Let everyone else make black rifles. That need is fully filled. Remington's bread and butter is... people in duck blinds and deer camps -- and there are millions of them -- covet nice bluing, walnut and a smooth action.

They forgot that. I suspect they will pull through. But their marketing, product planning and senior management needs an enema.

Cheers,

Sirhr

 

[Strykervet]

Buying AAC was damn sure a departure from duck blinds, that's a fact!

And when it comes to buying "black rifles" who the fuck wants a Remington? I mean, really? For the price?

 

[Nik H]

If you can't keep up, fall by the wayside.

They have produced nothing notable in a LONG time. All their contributions are from a time long since passed.

Too many other companies that are showing them how to do it. They just can't seem to smell the coffee.

 

[Gunfighter14e2]

Can't see the post or most of the comments but, I've never been one to shit on what/who brought me to the dance or home.

 

[Jefe's Dope]

A day late and a dollar short seems to be the business plan as of late. I sincerely hope they can recover and find their niche again. It's a great American company that I'd like to see succeed and be on top again.

 

[Slash0311]

Remington and Colt seem to have a lot in common. Both forgot what their company was built on. Quality firearms. Most people will pay more if the product is high quality. Colt seems to realize this and are starting to focus part of their attention on 1911s for the consumer again. Most people I think would take a Colt 1911 or other brands if its well made. But cold still isn't there. I was going to buy a new Python a few months ago. I looked at two different shops and decided not to buy one. Both had function issues with opening the cylinder and the finish certainly wasn't worthy of the name.

Remington needs to look at this type of example or they're history.

 

[Arc Light]

We can't afford to lose any American firearms manufacturer. Next time the Dems are in control, they WILL have an all out assault on the 2nd Amendment. The scumbags just can't help themselves.

Just to add, this article is exactly the reason I don't read anything by the leftist Yahoo News. Notice the smug tone and snide remarks like, "given the current U.S. president's commitment to allowing unfettered access to firearms. "

 

[hlee]

Republican presidents are terrible firearms salesmen. Gun enthusiasts, as a group, are only mobilized by fear. Give them (us) peace of mind and we will fracture into groups vying for attention and moral superiority (Hunters/Sportsmen, concealed carry proponents, shotgunners, plinkers, high-power competitors, tactical competitors, cowboy action shooters, etc).

National constitutional carry? Yawn
Abolishment of the BATFE? cool
A bill to limit the number of firearms purchasable by an individual to 100 per day? Oh, for fucks sake! I better get out there and buy something before that passes. And, I better write my congressman. And, I'm posting this on "the hide" so that everyone else knows about it...

While you may infer an smug tone to the comment, it is an accurate assessment that democrat presidents boost firearm purchases.

I suggest that anyone interested in the psychology of firearm sales to read Glock: The Rise of America's Gun by Paul Barrett. The cliff's notes version is that firearm manufacturers, sellers, and national organizations do not think terribly highly of the buying public. You are a wallet with legs and all they really care about is sucking as much money out of you as possible.

 

[Nik H]