Remington files for Bankruptcy

Discussion in 'In the News' started by RedDawnTheMusical, Mar 26, 2018.

  1. RedDawnTheMusical

    RedDawnTheMusical Well-Known Member

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  2. UtiPossidetis

    UtiPossidetis American

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    Unfortunately they really don't get that they're quality has dropped dramatically over the past few years.
     
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  3. RedDawnTheMusical

    RedDawnTheMusical Well-Known Member

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    yeah it has been a while since anything in the Remington line has excited me, but I'm sure the gun-control advocates will see this as a victory and it will encourage the frivolous lawsuits.
     
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  4. moe mensale

    moe mensale Well-Known Member

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    The Sandy Hook lawsuit is BS and the over-production was a bad guess on their part. QC issues are an iffy thing.

    They filed for Ch. 11 reorganization because they can't handle the ~$1 billion in debt piled on them by Cerberus, who bought them in 2007 when they only had ~$250 million in debt. They'll restructure their debt, hopefully dump most of it, maybe get a new owner that appreciates and understands the firearms business and be back in business stronger than before.

    https://www.bloomberg.com/news/arti...n-debt-fizzles-as-trump-cools-firearms-fervor
     
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  5. RedDawnTheMusical

    RedDawnTheMusical Well-Known Member

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    Yeah I think that they will come through Chapter 11 just fine and it is an effort to dump debt. The over-production was something that I believe a lot of manufacturers did - Savage firearms was dumping their new AR platform at low prices because they did the same thing. I think that the Sandy Hook lawsuit was over "marketing" firearms to young kids, which made no sense - especially since the shooter didn't buy the guns but rather stole them from his mother that he murdered.
     
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  6. Wegahe

    Wegahe NRA Instructor

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    Actually most of the gun makers made the same mistake. The suppliers to the local gun shops also made the same mistake of over stocking. Cerberus dumped Remington and Bushmaster together into Remington Outdoors

    Colt filed chapter 11 in 2015. American Outdoor Brands= (S&W), Vista Outdoor Brands= (Savage, Federal and others) and Ruger may be next in line. Someone said quality issues are the cause. It has to be something else... Such as spending the capital to ramp up production prior to the 2016 election.
     
  7. moe mensale

    moe mensale Well-Known Member

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    Stop interjecting facts into emotion-driven crap! :panic:
     
  8. UtiPossidetis

    UtiPossidetis American

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    Quality is a factor when Fudds that have always owned the brand will only buy old models because the new ones are "****". Yes, the debt and the idiotic management are part of it but the manifestation that led to many dropping them from consideration and going Mossberg or elsewhere had to do with quality. R51 anyone?
     
  9. moe mensale

    moe mensale Well-Known Member

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    Time for new ownership. By gun people.
     
  10. latter_day_hippie

    latter_day_hippie Well-Known Member

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    I suspect this is a pre-packaged bankruptcy upon which an acquisition of the assets and intellectual property of Remington is contingent. That is a common practice in the acquisition of distressed companies by a private equity firm or other equity sponsor as it allows the buyer to acquire only assets with tangible value and none of the debt while at the same time protecting the creditors by leaving the original entity (and in this case, Cerberus - the private equity firm that owns them currently) intact and still liable for any debt. Remington's financial woes date back to before the original Cerberus acquisition in 2007. The media attention on this at the current moment is nothing more than hype to propagate a myth that gun-control advocates are "winning" in the wake of Parkland.
     
  11. Craftsman

    Craftsman Well-Known Member

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    Yep. I read another article that opened with the whole "gun control" issue as why Remington was failing. The second paragraph said something like "and hundreds of millions in leveraged buy-out debt didn't help." Talk about burying the lede.
    There are also three benefits to Remington that haven't gotten as much attention. The first two are getting out from under the Sandy Hook and Model 700 defective trigger lawsuits. I read they have already filed the correct motions with the appropriate courts. The third is it gets them out of any penalties or obligations under their union contract in New York. I expect we will see the Ilion, NY plant shuttered as part of the bankruptcy reorganization.
     
  12. Barry l.

    Barry l. New Member

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    Recently purchased a RP9 and have been happy with it. Their ammunition is good (love the Golden Saber and ultimate defense) I hope they make it out of bankruptcy a better company.
     
  13. moe mensale

    moe mensale Well-Known Member

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    As much as it might affect their remaining Ilion employees, their union commitments have throttled them for years. They've already got 3 or 4 fairly new facilities in gun country that could absorb what's left in NY.

    Hell, Gov. Cuomo could claim it as a gun control victory saying he drove those "purveyors of death and destruction" out of NY for good! :lol:
     
  14. moe mensale

    moe mensale Well-Known Member

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  15. Nemo

    Nemo Man of Myth and Legend

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    Bravo Big R, Bravo!

    Nemo
     
  16. atlsrt44

    atlsrt44 Well-Known Member

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    Too bad the stock owners got boned
     
  17. Wegahe

    Wegahe NRA Instructor

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    Really????

    How?

    Old Common Stock was cancelled upon emerging and NEW common Stock issued. this was to replace the cancelled common stock. In some cases warrants for debts that were allowed to remain was issued. Two separate unrelated actions are at play.
     
  18. Craftsman

    Craftsman Well-Known Member

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    Per my earlier post, this was a purely administrative play. The "owners" loaned the company money (leveraged buyout) and could control whether the terms and conditions were or were not met. It was financially advantageous to go through bankruptcy and shed the unsecured claimants in favor of the lien holders, who were promptly issued new stock. Too bad if you bought stock and weren't part of the group who also loaned them more than they could pay back. Modern companies issue stock to suckers and debt to their next owners.
     
  19. moe mensale

    moe mensale Well-Known Member

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    And again! #-o

    https://www.foxbusiness.com/lifestyle/remington-arms-bankruptcy-surging-gun-demand