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Remington Needs Money To File Bankruptcy

Gun maker Remington Outdoor Company has reached out for financing from banks and credit investment funds that will allow it to file for bankruptcy, according to Thursday’s report by Thomson Reuters.

Sources close to the matter told Reuters reporters the company began its search after missing a coupon payment on its debt. Remington has been working with an investment bank on options to restructure its more than $950 million debt.

The North Carolina-based gun maker is searching for debtor-in-possession financing, which would allow it to continue to operate during the financial reorganization that ensues during bankruptcy proceedings. Companies typically seek such financing when they’re financially distressed and in bankruptcy.

Remington’s woes are due in part to sluggish gun sales following the presidential election victory by Republican Donald Trump, whose key ally during the campaign was the National Rifle Association. By making gun rights a part of his platform, Trump contrasted greatly from Democratic opponent Hillary Clinton.

With Clinton predicted to win (and continue high gun and ammo sales seen during President Obama’s tenure), many in the gun industry beefed up supply only to see waning demand. Nine months in, Remington’s sales fell by 38 percent last year and trailed the year before by some $177 million, according to financial filings.

But another part of Remington’s troubles come from the investment side, according to Reuters. Following the 2012 shooting at Sandy Hook Elementary School, the company was abandoned by some of its investors after learning a Bushmaster rifles was used in the massacre. Bushmaster is one of the more than a dozen companies under the Remington umbrella. The company has had trouble regaining investors.

Remington has some $958 million in debt and repayments are due next year and 2020. Given the weak market and looming debt payments, notable credit rating services have downgraded the company’s performance and warned of the company possibly defaulting on loans.

source: guns.com

20 Comments

  • Albert Maloof

    Too bad. They have been around a long time.

    Reply

  • Donald Ort

    Apparently, OB actually did stimulate the economy; Remington probably would have made a fortune if Hillary had won the election!!!!!!!!!!
    Sad that they have to pay a price because “we the people” voted in a 2nd am. believer!!

    Reply

    • 762x51nato

      As screwed up as Remington’s situation is, would you have preferred rising gun sales, at the cost of having the Wicked Witch of the East in office as our President? With her drug and alcohol addled brain,with her finger hanging poised over the Commit button on the Football? Not me, I’d rather lose Remington Arms. But remember: This problem occurred because of poor business decisions on the part of Remington’s top management. The CEO and CFO have to go, as well as all other managers responsible for the loss and subsequent debacle.

      Reply

  • paul_yannucci@yahoo.com

    Remington makes great weapons. I think if they manage the bankruptcy right they should be ok. I have a Remington rifle that I like. I’m going to take a second look at them.

    Reply

    • soljerblue

      I have a Model 700 in ’06 — made before 1975 — bedded the action and floated the barrel. I’ve taken both deer and bear with it. Drives tacks. Remington makes the best.

      Reply

  • rottenrollin

    Remington is suffering under the law of unintended consequences.

    BTW…….Unintended Consequences, by John Ross, GREAT read………

    Reply

  • keith andrew bounds

    I HATE to hear that news. I HOPE they can come out of this at SOME point in the future.

    Reply

    • Harry Wollscheid

      maybe the company exec’s. have been getting too many and too big of bonuses. some big companies claim bankruptcy but still get a bonus, what’s wrong with that picture?
      i guess that’s how it works in the system……………….

      Reply

  • 762x51nato

    I would be willing to help Remington by contributing via public funding. We need every gun company we’ve got. Of course the CEO, FEO and other heads must roll.

    Reply

  • Ugly Mutt

    I have several old Remington’s in my collection, all great shooters. I bought an 887 a couple years back for turkey and goose hunting, what a POS. Making cheaper guns did not help their sales any either, word gets around in a hurry when you used to make great stuff and now you make sub standard stuff. I just hope they can get back on their feet and start making some high quality guns again.

    Reply

  • Bubba Love

    What about current rebates?

    Reply

  • Wayne Jones

    This should make my 1909 Remington 12 gauge automatic more valuable. They really made some nice guns.

    Reply

  • David J. Ingraham

    I think they should merge with Browning Arms. They have along history of previously building Arms designed by Browning Arms or National Fabric of belgium.

    Reply

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