Remington Outdoor Company has been undergoing an attempt to reorganize following its filing for bankruptcy protection. It’s been a rough time for the gun manufacturer as sales didn’t go up quite as much as anyone expected, mostly because the gun grabber candidate lost in 2016, and now everyone is in a tough spot.
Now, though, there’s a bit of good news for Remington. The bankruptcy court has approved its reorganization plan.
Remington Outdoor Company (“Remington” or “the Company”), one of the world’s leading designers and manufacturers of firearms, ammunition, and related products, today announced the United States Bankruptcy Court for the District of Delaware confirmed the Company’s Plan of Reorganization (“the Plan”). Remington expects to emerge from bankruptcy before the end of May.
The Plan, a comprehensive balance sheet restructuring, will cancel over $775 million in debt while all trade and business claims are honored. The Plan received support from over 98 percent of the voting Term Loan Lenders and all of the voting Third Lien Noteholders. Upon emergence, Remington will have a new Asset Based Loan (“ABL”) facility of $193 million, the proceeds of which will refinance the existing ABL facility in full. In addition, the Company will have a $55 million First-In, Last-Out Term Loan and a new $100 million Term Loan.
“We are very pleased to have the support of our customers, suppliers, creditors, and owner in reaching this milestone,” said Anthony Acitelli, Chief Executive Officer of Remington. Mr. Acitelli continued, “I want to especially thank our dedicated employees spread across the United States that have remained focused on Remington throughout this process.”
Now, some people aren’t really fans of Remington as a company. They don’t like its products and probably could care less about the company itself.
But the truth of the matter is that Remington may well be the first of many such companies to have to go through this. If it fails, it may signal the potential failure of numerous other companies in the firearm industry.
The truth is, a strong firearm industry is essential to the ability to exercise the Second Amendment. After all, without gun companies, there aren’t any guns to buy. It’s not rocket surgery here.
I, personally, am glad to see Remington make it through this tough time. I want it back, strong, and contributing to the market.
This is a good step for the company and is a very positive sign. No, it’s not as positive as not having to file bankruptcy in the first place, but it’s also better than shutting its doors forever.
Now, if the company can manage things in an intelligent manner from here onward, it should be just fine. The last thing it needs to do is take too many chances, though. It needs to focus on what it does well and what people will buy. Minimize the gambles as much as possible–you can’t just not take chances at all–and focus on your core product lines.
If it does that, it should be just fine–in my opinion.
Then again, I’m not exactly a business genius by any stretch of the imagination. Still, I’m glad to see Remington potentially getting its stuff together.