How does a gun manufacturer go bankrupt in this environment? I cannot find some of the guns I have wanted for over two months.
They must have been to pc. I know they were in NY so that’s a big part of the problem. They waited too late to get out.
I think that the Sandy Hook litigation is the likely reason for bankruptcy. If the Navajo nation is smart (and I’m sure that their advisors are) the transaction will be structured to leave liability from prior litigation in the past. I used to be an investment banker and even after 25 years, I can think of at least two structural alternatives that would prevent any old litigation liability from attaching to the new owners. The legal status of an Indian tribe (taxes and other immunities) could make it very interesting.
Well, among other things, they bought Marlin, fired all the workers, and relocated the factory to another state...then learned the hard way that those workers were the only ones that knew how to produce good product on the factory’s worn machinery.
When you hear of a major corporate bankruptcy, always trace back to the investment banker or 'private equity' firm that loaded it up with debt and sucked it dry. You'll almost always find one 5 - 15 years back.
Simple. Let the bean counters run the company for well over a decade (Cerberus) and build stuff no one wants and this happens. Everything I have bought from them in the last 10 years was a donor.
“How does a gun manufacturer go bankrupt in this environment?”
remington, bushmaster, marlin and several other gunmakers were financially raped and bankrupted by Cerberus Capital Management through a series of leveraged buyouts that piled on debt whose money was paid out to “investors”, leaving the companies too debt-laden to continue to operate: