Chapter 11 is Filed for America’s Oldest Firearms Company
Words By: Wally F. Photos by: Various Internet Sources
……….Not so much a surprise but a confirmation now. Remington announced that they would be filing for bankruptcy protection due to poor sales in the lasts several years. Today the company formally started the process.
……….The chapter 11 filing is aiming to reduce their current debt by $700 million dollars from a total of $950 million and push back $145 million to their subsidiaries and provide $100 million in creditor-funded money as a debtor-in-possession term loan. Founded in 1816, Remington is one of the oldest and best-known gun makers in the world. It’s owned by Cerberus Capital Management, which plans to shed ownership once the bankruptcy is complete.
……….Firearms sales have been in decline ever since Donald Trump entered the office of the President. With the fear of gun control not on the immediate horizon (except for right now) Many have call this decline in sales the “Trump Slump”. Parent companies for Smith and Wesson and Ruger have also experience drops in sales in recent years. This is backed by the current F.B.I. background check for firearms being down by 8.4% in 2017, while the checks are on individuals and not the number of firearms bought per check the stats plus lower profits from the manufacturers are telling signs.
……….While the trend of firearms sales have always traditional fallen when a Republican president is in office and risen when a Democrat is in the White House, Remington’s sale dropped 27% the moment Trump was elected. While the company is going through it’s Chapter 11 filing Remington is states that their normal production will continue during this process. Similar to what happen when Colt Defense filed for Chapter 11 back in 2015 I don’t imagine that Remington will totally go under. Like Colt Remington will restructure and return as a more streamlined operation similar to what Ford and other car companies did when Obama was in office, minus the bail out of course. I don’t see the oldest firearms company in America disappearing anytime soon.
Reporting for TV-PressPass