Remington files for bankruptcy protection

by Jeff Helsdon | August 12, 2020
a Remington firearm with a box of ammo
Photo by Jeff Helsdon

Remington Outdoor Company filed for Chapter 11 bankruptcy protection for the second time in just over two years on July 27.

The parent company of such iconic brands as Remington, Marlin, Barnes Bullets, Bushmaster and DPMS filed a petition for Chapter 11 reorganization to allow the sale of its assets. The company previously filed for Chapter 11 in 2018. The New York Times reported in the wake of that filing, the company was allowed to shed $775 million in debt. As part of the restructuring, ownership was transferred to creditors, including JP Morgan and Franklin Templeton.

Remington’s challenges

Although gun sales in the United States are high with the pandemic, Remington has faced challenges since 2018. These include a lawsuit against its subsidiary Bushmaster, which manufactured the firearm used in the Sandy Hook Elementary School shooting in 2012. The Supreme Court ruled in November 2019 the suit against the company by families of the victims against Remington could proceed.

Remington has also been plagued by declining sales, dropping to $437 million for 2019 as compared to $865 million in 2016. The court documents also cite the inability to procure raw materials to grow the business as one of the challenges it faced.

North America’s oldest gun manufacturer

Prior to the filing in late July, media reports stated the company was in talks with the Navajo Nation to take over the entire company. These talks apparently failed.

The motions filed on July 28 allow Remington to keep operating while the court proceedings take place. They also set up bidding procedures for the sale of the company’s assets, either as a whole or in parts.

Remington claims to be North America’s oldest gun manufacturer, founded by Eliphalet Remington in New York in 1816.

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Comments

  1. Terrence Fader wrote: This is what happens when you start making guns that look like assault weapons apposed to making hunting weapons.... it is a gun and should be simple yet functional and accurate. Bullets dont need to be a thing of beauty and neither do guns... Keep it simple stupid....KISS.... now it will cost them....and us.... guns are not meant to be punching holes in paper...they are for killing simple as that. If you collect them then you need a new hobby. They are for hunting only.
  2. CLAY STOWELL wrote: In response to Mr. Fader's comment, guns are for Liberals to steal. Just ask Justin.
  3. Jack wrote: Guns have always been works of art, that is why people get attached to them

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