Remington Gets Ready to File for Bankruptcy

There’s been much debate surrounding the so-called “Trump Slump” in the gun industry. How bad is it? How long will it last? Will it change the face of the industry? Is it even real? While we still don’t have any concrete answers to these questions, there is one thing we know for certain: Remington Arms is struggling.

Advertisement

Last month, the firearms manufacturer – one of the oldest and largest in the country – began exploring options to restructure its $950 million debt. The company not only saw a significant drop in sales in 2017 but lost a number of its investors. The gun manufacturer has also been caught up in a handful of legal proceedings, including another lawsuit related to the 2012 Sandy Hook shooting.

On Monday, the company officially announced that it had reached a restructuring support agreement with creditors to reduce its debt and allow it to continue normal operations as it enters bankruptcy proceedings.

More specifically, creditors will reduce Remington’s debt by approximately $700 million and will contribute $145 million of new capital toward Remington’s operating subsidiaries. The company is preparing to file a prepackaged reorganization plan with the U.S. Bankruptcy Court of Delaware for Chapter 11 bankruptcy protections.

“Since its founding over 200 years ago, Remington has been a uniquely American company and brand. Our longevity is owed to generations of loyal customers and hard-working employees who met challenges and delivered results,” Executive Chairman of Remington, Jim Geisler, said in the statement. “Difficult industry conditions make today’s agreement prudent. I am confident this regrouping ensures that Remington will continue as both a strong company and an indelible part of our national heritage.”

Advertisement

“We will emerge from this process with a deleveraged balance sheet and ample liquidity, positioning Remington to compete more aggressively and to seize future growth opportunities,” Anthony Acitelli, Remington’s Chief Executive Officer’s added. “We look forward to serving our customers, our partners throughout the industry, and our many fine employees, now and long into the future.”

Join the conversation as a VIP Member

Sponsored

Advertisement
Advertisement
Bearing Arms Staff 10:45 AM | November 04, 2024