Remington said in a statement that its operations “will not be disrupted by the restructuring process.” CNN Reported.
“Remington, which is headquartered in North Carolina and has a sprawling factory in Ilion, New York, has faced legal trouble in recent years.
The company settled a class action lawsuit regarding allegations of defective rifles a few years ago. It has also been sued because of the mass shooting in 2012 at Sandy Hook Elementary in Newtown, Conn. The company produces the Bushmaster rifle used in that shooting.
Remington is owned by the private equity firm Cerberus Capital Management. Cerberus will give up that ownership once restructuring is complete, a spokesman said Monday.” (Read More)
With firearm sales on the decline, many other firearm manufacturers are feeling the strain on their profit margins as well. While Remington is not a publicly traded company, shares in rival Sturm, Ruger & Co. slid almost 3 percent Monday. It’s shares have fallen almost 14 percent this year NBC Reported.
Firearm background checks and gun sales, had risen steadily for at least a decade, peaking in 2016. Most likely due to fear of Hillary Clinton being elected into office and the Leftist Gun Control measures she would most certainly would have implemented.
Since President Trump took office however, firearm sales have begun to decline. POTUS became the first sitting president to address the National Rifle Association in three decades, telling members at their annual meeting last spring, “You have a true friend and champion in the White House.”
Remington Outdoor Co., the nation’s oldest gun maker, will attempt to file a prepackaged reorganization plan with the U.S. Bankruptcy Court of Delaware under Chapter 11 of the bankruptcy code.
Financial rating company Moody’s Investor Service downgraded Remington’s corporate family rating to Caa3, a highly-speculative level, in December. Moody’s simultaneously said the probability of a Remington default had increased.
“We are very concerned that Remington will be unable to refinance debt that comes due in April 2019 given its weak operating performance and high financial leverage,” said Kevin Cassidy, the senior credit officer at Moody’s Investors Service.