One of America's Oldest Gun Makers Files for Bankruptcy for 2nd Time

[BumRushDaShow]

Source: New York Times




The Remington Arms Company, one of America’s oldest and largest gun manufacturers, filed for bankruptcy protection on Monday after years of litigation and a loss of investors took a heavy toll on its finances. The Chapter 11 filing in the U.S. Bankruptcy Court in Decatur, Ala., is the company’s second restructuring in two years. Remington has been in search of potential buyers and had been in talks with Navajo Nation to acquire it out of bankruptcy, but the negotiations collapsed in recent weeks, leaving the company without a bidder as it goes through reorganization.

Remington Arms was founded in 1816 in upstate New York by Eliphalet Remington II, at a time when most guns in America were crude rifles made by heating and hammering iron strips around a metal rod. Remington believed he could build a better gun than he could buy and began making firearms in his father’s forge. Remington’s firearms were used in the Civil War, World War I and World War II, and remain popular for use in shooting sports and hunting and by law enforcement and the military.

The filing by the company comes as demand for firearms is down, despite a recent uptick in sales during the coronavirus pandemic. But a slump in gun sales is not what drove Remington to file for bankruptcy, said Adam Winkler, a professor at the U.C.L.A. School of Law who specializes in gun policy. “Remington’s problem is mostly a problem of Remington mismanagement and not a reflection of larger trends in the gun world,” he said. “I don’t think we’re going to see a whole bunch of gun companies going under now.”

Remington’s troubles date back more than a decade to 2007, when the company was acquired by the private equity firm Cerberus Capital Management. At first, Remington’s sales surged under Cerberus as demand for guns across the country was booming. But in 2012, 20 children and six adults were killed at Sandy Hook Elementary School in Newtown, Conn., and Remington faced a fierce public backlash after it was reported that the company had manufactured the AR-15-style rifle, the Bushmaster, used by the gunman. The families of the Sandy Hook victims sued the company, and Remington took on debt, both from paying hefty legal fees and from buying out investors who wanted to divest after a wave of negative public sentiment toward the company.

Read more: https://www.nytimes.com/2020/07/28/business/remington-bankruptcy-guns.html

[tiptonic]

1. THIS IS GREAT

As owner of a number of firearms, its about time for this to happen. I hope they all go out of business. Enough is enough, how can those people sleep at night? We have more guns in this country, than we do people. Its always money above human life. The NRA needs to be banned. Don't get me started, on them taking millions from Putin. Enough is enough!! Sorry for the tirade..

[House of Roberts]

2. This is the problem.

Remington’s troubles date back more than a decade to 2007, when the company was acquired by the private equity firm Cerberus Capital Management.

Vulture capitalists always bleed a company until it goes into bankruptcy. All loan contracts made to companies should contain a clause that calls the loan in for payment in full, the moment a vulture capital company acquires it. That would put a stop to these bankruptcies after acquisition.

[Javaman]

3. maybe with this, the right wing gun nut morons will finally realize what's

actually happening in this country.

I know, I know. that would require them to actually read. sorry.

[Hoyt]

4. Companies don't sell to Vulture Capitalists unless they have little choice. Just like ToysRUs,

who wasn't sold until their bonds -- their ability to borrow -- were downgraded to junk status.

Toys would have gone out of business 10 years sooner, were it not for the infusion of cash. I suspect that is pretty much the case here.

No one chooses to go to a loan shark, payday lender, vulture capitalists, etc. But, it's kind of the final step before closing the doors.

Although, I'm fine with gun-profiteers, including stores and individuals who buy gunz in hopes of profiting later, losing everything.

[reACTIONary]

19. Thanks for the perspective nt

[melm00se]

6. The issue with Remington

is that they:
1. have seen a drop off in quality control (which pre-dates their acquisition by cerebus). Even their flagship models (Remington 1100 shotguns and 700 series rifles) have suffered to the point that no one in the gun communities recommends them unless you can get an older model.
2. have rolled out a couple of disasters (the Remington R51 was a colossal failure on their part).
3. are the target of the Sandy Hook lawsuit and the courts have declined to rule in their favor on invoking the PLCCA which has spooked investors.

These 3 would kill any company regardless of who owns them.

[Aristus]

5. Yeah, sorry about that.

This is what happens when you saturate a market...

[IronLionZion]

7. They'll say Biden's coming to take your guns

like they did with 8 years of Obama. Only this time we have roving bands of liberals destroying cities and heading out to the country next.

That kind of nonsense will help gun sales.

[yaesu]

8. The last Remington I owned was WWI Mosin-Nagant they made for the Russian Government

perfect timing by the way because the Soviets took over when the bill was due & didn't pay. Being it was a very large contract they almost went belly up but the US gov stepped in & bought up the remaining inventory.

[heckles65]

9. Love this cartoon

[link:http://leftycartoons.com/2020/05/16/private-equity-vampire/|

[BumRushDaShow]

10. Here's the image!

[Nitram]

11. Can anyone fill me in on what is meant by "at a time when most guns in America were crude rifles

made by heating and hammering iron strips around a metal rod." Is there a more detailed description of this process that would help me understand it? Btw, I own the Pennsylvania long rifle my ancestor, a captain in the Revolutionary War, carried into battle. According to Wikipedia, "The long rifle, also known as longrifle, Kentucky rifle, Pennsylvania rifle, or American longrifle, was one of the first commonly used rifles for hunting and warfare.[1] It is characterized by an unusually long barrel, a development in American rifles that was uncommon in European rifles of the same period."

https://en.wikipedia.org/wiki/Long_rifle

[NutmegYankee]

14. Probably a reference to muskets.

Rifles were bored (drilled) to produce the spiral.

[Nitram]

15. So the article ignores the fact that rifles were being produced by American gunsmiths that were more

Last edited Tue Jul 28, 2020, 11:35 PM - Edit history (1)

accurate and had a longer range than any European gun. Muskets had a range of maybe 100 yards, while long rifles were accurate up to 300 yards (or more, in the hands of a skilled rifleman). George Washington assembled a corps of 1,500 riflemen, that played an important role in the defeat of the British. The British carried smooth-bored muskets that were effective for rapid-fire volley shooting. Meanwhile, American marksmen could pick off targets such as officers from much farther away than the British guns could shoot.

Clearly, Remington's innovation was the mass production of rifles with interchangeable parts and a standard size of bullet. That would lower the cost substantially, and make repair far easier.

[NutmegYankee]

16. Basically.

[NutmegYankee]

22. Have you ever fired that long rifle?

I think the musket was the main military weapon simply because it was easy to reload and resistant to the fouling of black powder. The rifles are very accurate but are a pain to get the ball started in the barrel. I usually need to use a special hand tool for that step. Naturally this limited their use to sniping and other distance engagements.

[Nitram]

23. My Dad cleaned it up and connected with a master gunsmith to evaluate the rifle. They ended up

firing a couple of balls with a small charge of powder to prove it still works. It was indeed a weapon more suited to sniping and guerrilla warfare because it was slow to reload, but vey accurate at long distances. These rifles apparently played a large role in Andrew Jackson' victory in New Orleans during the War of 1812, and a popular song written about the occasion led to the common misperception that they are "Kentucky rifles."

[SeattleVet]

18. The article was probably referring to Damascus barrels...

which are made from multiple strips of steel forge-welded together and drawn into a long rod from which they make the barrel.

Here's a video of pretty much the entire process:

Remington came up with a process that made a more consistent high-quality barrel.

[Joe Nation]

12. Yeah, thoughts and prayers boys

N/t

[sarcasmo]

13. Following the Trump business model.

[eppur_se_muova]

17. When your business model requires selling more and more guns to a shrinking market ...

... something's gotta give.

[hack89]

20. Why do you think the market is shrinking?

Just curious.

[eppur_se_muova]

21. Fewer Americans hunt every year, and fewer have been buying guns ...

Those who do buy guns have been buying more and more guns, and that's what keeps sales up. Just 3% of Americans own half of the guns. Pushing these "super consumers" to buy more is how the mfgrs hope to stay in business.

Weirdly, the pandemic has led to a big spike in gun sales -- because, you know, to fight a virus, you really need all the guns you can get.

[Nitram]

24. Any excuse to add to the "collection."

[hack89]

25. I think it is the BLM movement that has caused a spike in gun sales

On both sides of the issue. When you see armed AA militias in the news you know something has changed.

[Dial H For Hero]

28. I think it fair to say that the many first time gun owners who are causing the huge spike in sales

aren't buying them because they think they can fight Covid-19 with bullets. Quite obviously social unrest and riots, along with a fear of societal breakdown, are the primary cause.

How rational such purchases are is separate issue.

[Botany]

26. The old fashioned Remington 870 express is a quality gun

Deer slug tube and an upland game shotgun tube ... well made and useful.

Remington deserves to go belly up for getting into the AR / AK market.

BTW after Sandy Hook my hunting days were pretty much over.

[hunter]

27. Most U.S. Americans don't care enough about guns to bother owning one.

Responsible gun ownership is a hassle. Irresponsible gun owners are a danger to themselves and others.

Most of the guns left in my family, those that haven't been destroyed, are hand-me-downs. For example, my brother has my grandfather's deer rifle and it's in good working order.

Nobody in my family hunts much any more but quite a few of us still fish.

My great grandparents were Wild West. My great grandmothers were hunters.

Contrary to Hollywood myth, guns are generally useless for "self defense."

[Baclava]

29. Not much call for hunting rifles, they needed to retool for semi-auto CCW pistols

Thats where all the sales are happening now, they never developed a handgun line. The market moved on.