Remington, one of the oldest and most well-known gun companies in the world, plans to file for Chapter 11 bankruptcy protection

Remington, one of the oldest and most well-known gun companies in the world, plans to file for Chapter 11 bankruptcy protection

Remington said in a statement that its operations “will not be disrupted by the restructuring process.” CNN Reported.

CNN Reports:

“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)

You can Read Remington’s Filing For Bankruptcy HERE!

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.

You can Read Remington’s Filing For Bankruptcy HERE!

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.

Steve Sheetz

Steve is an avid outdoorsman who has been fortunate enough to publish two books on archery hunting. His first book, For the Love of the Hunt, was published in 2011. His second book, Wading Through the Darkness was published in 2015. Steve sits on numerous Pro Staffs throughout the archery industry. For almost a decade Steve helped build but wanted the opportunity to build something bigger and better and launched in December of 2014 as a way to share his love and passion for the outdoors. Today Chasin'Whitetails Media is growing. With the addition of the radio show in 2014 and a The Heartbeat TV show in 2015, who knows what will come his way next. When it comes to understanding the movement and logic of the urban whitetail and waterfowl, he is more than just a Ph.D. with a love of the outdoors. He is a self-proclaimed expert who loves to engage and teach others about the sport he loves so very much. Spending over 125 days a year in the big city woods and urban waterways chasing all types of game.

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