Remington Returns to Bankruptcy Blaming Falling Gun Sales

Yahoo Finance ^ | 7/28/2020 | Rick Green and Steven Church

[ek_hornbeck]

Remington Outdoor Co. filed for bankruptcy for the second time in two years with plans to sell the 200-year-old maker of firearms.

The company said reduced gun sales prevented it from making money even after restructuring its finances in its first bankruptcy. Remington had $437.5 million in sales last year, about half the business it did in 2016, according to court papers filed in Decatur, Alabama.

The company owes various lenders more than $250 million, including a $12.5 million debt to Remington’s home town of Huntsville, Alabama, which put up a loan to help upgrade a manufacturing plant there.

The Chapter 11 filing allows the company to keep operating while it devises plans to turn around the business and pay its creditors.

[Spktyr]

Actually, they do know Sig and Beretta. They also sometimes know “H&K.”

[Cobra64]

You win. Bye.

[maddog55]

There several years old but no problems and they work great.

[delta7]

Agreed about products, but the Sandy Hook lawsuits was a grind. The liberal banks have a part in not loaning any money to keep them afloat.
Old article, but securing money a problem.
https://truthout.org/articles/bankruptcy-won-t-keep-remington-from-producing-guns/

[Spktyr]

Define “several.” :P

[b4its2late]

And all I wanted for my 870 was a strap for it and they were out of stock. Sheesh.

[lurk]

People are looking for semiauto in rifles and sidearms, which might be useful in home or personal defense. Remington makes decent bolt action rifles and hunting arms. Other companies already have the name and the supply line for what people are seeking.

[JusPasenThru]

Wut? If they made 9x19 they would make a fortuna. It’s friggin hard to find.

I feel endorphinny because I just fired 100+ of said rounds into a target.

Come to think of it, I’m now a bitter clinger, which is much more exclusive than the basket of deplorable.

There needs to be an award.

[Zhang Fei]

[In the 1980’s and early 1990’s I did quite a bit of crisis consulting for banks. One of my clients was one of oldest savings banks in the country and it took 10 years of grossly incompetent management to push it to the brink of catastrophe. Our team was able to rehabilitate the bank and we remarked at the time that, “it is really hard to destroy a good brand”. Of course that was before the advent of woke management and woke media.]

---

There’s a popular impression (which I think is false) that PE firms are milking companies like Remington, recovering their investments along with fat profits, then driving these companies into the ground, upon which they make even fatter profits. That was the basis for Obama’s victory over Romney. Romney was viewed as a vampire among investors who made his living killing perfectly good companies. What’s your take on this?

[voicereason]

The unwashed today believe the Glock pistol is the only handgun on the planet.

I always love how they claim Glock pistols to be perfect and then dump another $300-$400 on upgrades for it. my last handgun purchase the Langdon Tactical Beretta 92. A rally great shooting handgun. I'm going to slowly sending him my other two 92s to work on.

[voicereason]

They got the,selves into a financial pickle by overextending themselves with debt load

That and likely they continued to operate as if they were the industry leader, which they haven't been in a long while.

[Robert DeLong]

I believe that is probably true as well. 8>)

[Eagles6]

Remington makes respectable AR15s and 1911s, along with their shotguns, bolts, pumps and semi hunting rifles.

They took a hit on the R51 pistol which supposedly sucks.

They make quality stuff so I'm guessing gross mismanagement or purposeful destruction.

[Svartalfiar]

Many of those people who are buying handguns would probably be better advised to buy the venerable Remington 870 shotguns

...Or a Mossberg 500.

[PLMerite]

"firearms-manufacturer-remington-in-talks-to-sell-to-navajo-nation"

Now all they need is to buy a distillery and they'll be good to go!

[masadaman]

Also don’t discount the effect of military contracts for the M4 which carried the company for many years. Companies can get very lazy feeding off of government and then the contract disappears and you have to find a new daddy. Count Douglas Aircraft, The Grumman Company and Litton in that group. The former two were absorbed by others, but the corporate indolence ran rampant.

[Cobra64]

Yup.

After the NY City POlice adopted them, cops were zipping their legs due to the stupid (safe?) trigger, so Glock introduced a “New York” trigger to reduce the threat.

Their ads for two decades was, “Glock Perfection” even when they were in the midst of introducing all of the subsequent, “Gens.”

Logic says, if they were perfect to begin with, further “gens” would be unnecessary.

[Trump Girl Kit Cat]

Falling gun sales REALLY, must be crappy products!! Most other gun manufacturers can’t keep products on the shelves!,

[Cobra64]

Not necessarily. marketing is a big factor. Do you subscribe to any of the dozens of firearms magazines? Look at the ads.

[T.B. Yoits]

Remington makes firearms and ammunition. How could they not be running three shifts?

For a good read about the decline of Marlin (under Cerberus / Remington) from the perspective of someone who was there:

https://www.marlinowners.com/threads/marlin-the-real-truth.573725/