Remington Outdoor To Restructure Debt In Bankruptcy Court

President Trump’s commitment to protect the right to bear arms might have spelled the end for a firearms’ maker

President Trump’s commitment to protect the right to bear arms might have spelled the end for a firearms’ maker

The restructuring agreement sets conditions for reorganization of debt payments due in 2019 and 2020 through a pre-packaged plan for chapter 11 protections to be filed in a DE bankruptcy court.

Current owner is Cerberus Capital Management, a private equity firm that owned Chrysler for a short time before the company went into bankruptcy proceedings and became part of the federal bailout of the industry.

Remington Outdoor filing for Chapter 11 bankruptcy protection, the company announced Monday, offering a restructuring plan that will allow the gunmaker to shed $700 million worth of debt.

"Difficult industry conditions make today's agreement prudent", said Jim Geisle, Remington's executive chairman. A company typically writes down its goodwill when the value of certain assets declines.

The unfortunate news from Remington Outdoor Co. falls in line with a trend being seen across the firearm industry. Nine months in, Remington's sales fell by 38 percent last year and trailed the year before by some $177 million, according to financial filings.

"We will emerge from this process with a deleveraged balance sheet and ample liquidity, positioning Remington to compete more aggressively and to seize future growth opportunities", Acitelli said.

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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.

Firearm background checks had risen steadily for at least a decade and spiked just before Trump's election, with many expecting a Hillary Clinton victory.

The opposite has occurred since Trump was elected. Its shares have fallen nearly 14 percent this year. Fears of a crackdown have tapered off under a president who called himself a "true friend" of the National Rifle Association. The company produces the Bushmaster rifle used in that shooting.

Fortune reports the bankruptcy results from two things: A reduced demand for new firearms and the hard climate created by the fact that the Sandy Hook Elementary attacker used a Remington Bushmaster rifle to carry out his criminal attack.

Barber also has been pushing to ban secrecy in civil-lawsuit settlements in federal court, saying that information on defective products should be made public, forcing companies to fix the defects or face economic consequences from consumers. Cerberus acquired the gun maker in 2007, just when gun sales began to skyrocket.

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