Gun maker Remington files for bankruptcy

NBC News

MADISON, N.C. — Remington, the gun maker beset by falling sales and lawsuits tied to the Sandy Hook Elementary School massacre, has reached a financing deal that would allow it to continue operating as it seeks Chapter 11 bankruptcy protection.

The maker of the Bushmaster AR-15-style rifle used in the Connecticut shooting that left 20 first-graders and six educators dead in 2012, said Monday that the agreement with lenders will reduce its debt by about $700 million and add about $145 million in new capital.  

The company was cleared of any wrongdoing in the shooting, but investors repulsed by the massacres distanced themselves from the company’s owner, investment firm Cerberus Capital Management. Cerberus acquired the gun maker in 2007, just when gun sales began to skyrocket.

Firearm background checks, a reliable barometer of gun sales, had risen steadily for at least a decade.

That changed last year with the election of President Donald Trump, and it has taken a toll on the gun industry.

Gun sales spike on the election of candidates who are perceived to be more likely to pursue more stringent gun control laws, whether or not there is any truth in that perception.

The opposite has occurred since Trump was elected. He 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.”

Firearm background checks declined faster in 2017 than in any year since 1998, when the FBI first began compiling the data.

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.

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.

The company, based in Madison, North Carolina, did not respond to attempts by The Associated Press to contact the company about the timing of bankruptcy procedures.

6 thoughts on “Gun maker Remington files for bankruptcy

  1. SJW fallout?
    Are weapon styles being singled out for forbidden status?
    It would appear that a produced/fabricated massacre event can focus on the weapon instead of the perpetrator. As such, the make and model gets a poor mental image over time and repetitions. Think Ford’s Edsel. Look into bacon and eggs, by Bernays. The public consciousness is manipulated to such degrees, I don’t even know what thoughts are my own anymore. Fugettabout the MSM sheeple, they are in a different world where their ideas, that they think are their own, are used against them to further an unconstitutional agenda. Gun confiscation will not happen at my house, until my life is gone from this body.

  2. Maybe they should go back to making typewriters. They’re back in demand because there’s no such thing as a “secure’ computer.

  3. My opinion
    But let truth be known
    The company was probably poorly managed
    Or profits skimmed to the point of failing
    Just like our government is doing to this country
    Gutting it

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