U.S. gun maker Remington Outdoor Company files for bankruptcy protection

Javier Stokes
March 27, 2018

Time will tell if the bankruptcy is the first of many in the gun industry. It is estimated that the company is under $1 billion debt. The incentive agreement was approved unanimously by the Morgan County Commission in March 2014.

Remington, which has roots dating to 1816, has lined up $100 million with lenders to continue operations. It remains unclear what will happen to its 3,500 or so employees as it tries to put its finances in order.

But no such legislation ever materialized, and sales have slumped with heavily pro-gun President Trump in the White House.

Remington Outdoor Company's headquarters are in Madison, North Carolina.

Fortune reports Remington's various businesses filed for Chapter 11 Sunday in the U.S. Bankruptcy Court in Delaware.

"After 20 children and six adults were killed in 2012 at Sandy Hook Elementary School in Newtown, Conn., public outrage zeroed in on Remington after the authorities reported that the gunman had used an AR-15-style rifle made by the company".

Remington Outdoor went to court in DE as it continues efforts to complete a deal that will see its private equity owner, Cerberus, relinquish control to creditors.

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But it was larger trends already underway that doomed Remington. Protestors are seeking stronger gun restrictions after 17 were killed in a massacre at Marjory Stoneman Douglas High School in Parkland, Fla.

Any belief that more restrictive regulation was on the way faded quickly.

In 2016, the Federal Bureau of Investigation processed a record number of background checks - used as a barometer for gun sales - but the rate has fallen since President Trump's election.

But there were clear signs that gun sales, even as production increased, were already in decline. It has been many years that we have seen these kind of numbers.

Since 2009, the number of guns in private hands in the United States has exceeded the country's population.

Privately held Remington Outdoor announced in mid-February that it had negotiated a restructuring deal with its major creditors and would file a prepackaged Chapter 11 reorganization plan. Likewise, profits at Sturm, Ruger & Co. are under pressure, and its stock is down 18 percent this year.

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