Remington Files for Chapter 11

BP_Remington

Inc., one of the largest United States makers of firearms, filed for bankruptcy protection Sunday to carry out a debt-cutting deal with creditors amid mounting public pressure for greater gun control. Specifically, Remington's plan is to "reduce its debt by $700 million through the Chapter 11 process and contribute $145 million to its subsidiaries". Remington, which owns more than a dozen brands, followed through with plans announced last month to restructure the company's almost $1 billion debt load.

Records from the bankruptcy court of the district of DE show that the company filed late Sunday.

These developments, at least the financial struggles, are the result of what some firearms industry analysts are calling a "Trump Slump" - Donald Trump's election hurt gun sales, while a Hilary Clinton victory would have had the reverse effect. Firearms manufactured by Remington Outdoor Co. have been used during multiple mass shootings. Gun enthusiasts traditionally stock up on firearms at times when political winds suggest tighter gun control lies ahead. Lawsuits related to the Sandy Hook school shootings were also cited as a factor in the Remington filing.

Surviving and thriving through reorganizations is common in today's business environment, even in the firearm industry.

But before anyone starts popping champagne over this, filing for bankruptcy doesn't necessarily mean that Remington is going anywhere.

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The agreement can be terminated upon the occurrence of certain events.

Gun maker is seeking to reorganize within 45 days of filing, so the main routines will be finished as soon as in May. But purchases have been on the decline since the Sandy Hook shooting in CT.

Brands include Remington, Bushmaster, DPMS/Panther Arms, Marlin, H&R and Dakota Arms. The company was owned by DuPont for almost six decades before it was sold to a private equity company in the 1990s. And the Navy Yard shooter in 2013 used a Remington shotgun.

According to Newsweek, Remington is owned by private equity firm Cerberus Capital Management but would likely give up ownership to its creditors in exchange for eliminating debts. Chrysler later became part of Italian automaker Fiat. After the rampage Cerberus announced it would like to sell the company.

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