After much speculation, one of the largest American manufacturers of ammunition and firearms, Remington Outdoor Company, announced that it is planning to file bankruptcy in the state of Delaware. Remington has reached a Restructuring Support Agreement with creditors that will be effectuated through a reorganization plan filed in a Chapter 11 bankruptcy. The restructuring deal will reduce the company’s debt by around $700 million and will add $145 million in new capital. The deal will give lenders ownership in the firearms maker.
Why Did Remington File Bankruptcy?
Some have speculated that the election of Donald Trump affected Remington’s gun sales, since gun owners were less worried about losing access to weapons after he was elected. Retailers stocked up on inventory expecting Hilary Clinton to win the last presidential election, and have now found themselves with unsold inventory and have stopped re-ordering from manufacturers. In addition, Remington had some unwanted press and litigation after the mass shooting at Sandy Hook Elementary School, when the gunman included a Remington Bushmaster assault rifle in his arsenal.
Executive Chairman of Remington, Jim Geisler, stated: “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. 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.”
More on Remington
Remington is based in Madison, North Carolina. Its recognizable brands include Remington, Bushmaster, DPMS/Panther Arms, Marlin, H&R, Dakota Arms, Parker, AAC, Barnes Bullets, Storm Lake and Tapco. Today, the company employs around 3,500 people. Huntsville is home to one of its firearm manufacturing plants. Officials state that that they do not believe that operations at the Huntsville facility will be impacted by the bankruptcy filing.