News|Industry News Last month, we covered the potential bankruptcy filing by Remington. The filing for bankruptcy would have been the second by the legendary rifle company who has been in […]
Last month, we covered the potential bankruptcy filing by Remington. The filing for bankruptcy would have been the second by the legendary rifle company who has been in business for two centuries. In that article, we also detailed the potential sale of Remington Arms to the Navajo Nation. A deal which has not come to fruition for Remington. Despite multiple months of great sales due to the global pandemic and civil unrest across America, Remington has officially filed for Chapter 11 bankruptcy.
As, stated before Remington was attempting to stave off bankruptcy filings by selling the company to the Navajo Nation. According to the Wall Street Journal, the two entities were in “advanced talks” on the Navajo Nation buying the company. Those talks collapsed between Remington and the Navajo Nation causing Remington to file for Chapter 11 bankruptcy. In the court filings by Remington, the company owes somewhere between 1,000-5,000 creditiors and listed between $100-500 million dollars worth of assets.
This is not the first time Remington has filed for Chapter 11 bankruptcy. In 2018, Remington filed for bankruptcy during the downturn of gun sales. During this time period it was a slow burn of gun sales amidst the perception of a pro-gun administration, also known as the “Trump Slump”.
Remington has a tough road ahead to get the company solvent and profitable again to attract potential investors. Recently, Remington has lost a potential buyer in the Navajo Nation and The Supreme Court awarded families of Sandy Hook Elementary Shooting the right to pursue lawsuits against Remington. Remington owns the Bushmaster brand which was used during the shooting. Remington’s first bankruptcy filing allowed the company to shake off about $775 million dollars in debt.
Remington might have been in trouble as early as 2007 when the company was acquired by Cerberus Capital Management. Jump forward to 2012 and the Sandy Hook Shooting which lead to many investors being bought out of the company. The Sandy Hook shooting and subsequent fall out strained the relationship between Remington and it’s investors.
The road ahead for Remington is unclear at this moment. The way ahead will be difficult for the company. We will have to monitor the situation to see if Remington can survive this second bankruptcy filing.
Do you think Remington can survive this second bankruptcy? Let us know in the comments below.
Thanks For Reading
If you enjoyed this post, hit that like button, share it a friend, and subscribe. If you have any suggestions, ideas, or comments. Please feel free to drop a comment. Be Humble. Train until only savagery remains and stay deadly ladies and gents.