Posted on 11/24/2017 6:31:02 PM PST by Mariner
Remington Outdoor, the second-largest U.S. gunmaker has suffered a “rapid” and “sharp” deterioration in sales and a similar drop in profits since January, and faces “continued softness in consumer demand for firearms,” credit analysts at Standard & Poor’s Global Ratings said in a report Friday.
S&P as a result has cut the company’s corporate credit rating — already at a junk-bond-level CCC+ — two full notches, to CCC-, a move likely to make the company’s high-yield debt less attractive to investors and lenders, and force Remington to pay more in interest. The company could face a change in control, bankruptcy, or default on its debt by next year.
A backlog of unsold, unwanted firearms will force Remington to operate at a loss and “pressure the company’s sales and profitability at least through early 2018, resulting in insufficient cash flow for debt service and fixed charges,” unless Remington gives up cash to pay for ongoing operations, S&P adds.
(Excerpt) Read more at philly.com ...
I have a beautiful Winchester M70 NIB.
Won it in a raffle.
Can’t afford the ammo.
Nice that stuff is so cheap, but I care about the company and employees...I hope they sell the company and brand...perhaps that will minimize losses.
I have no such items. See there was this boating accident...
Main plant is in Ilion NY and their new facility is in Huntsville AL. Plant is currently on layoff for a week, it is hoped this will help.
Remington has been run into the ground by its management group. They bought the company and took out more loans than they could ever hope to pay back, kept the money, and now the company is going down. The QC on a lot of their breadbasket guns is way down and over the past few years they have marketed some of the strangest pistols I have ever seen. People are still buying lots of guns - they’re just not buying Remington guns.
It’s partly self-inflicted: the R51.
I don’t think the problem they have/had with the older 700’s as far as firing when releasing the safety is helping the image much, either. I have one of those 700’s but never had any problem with it, but...
I don’t see why they are in junk bond status after all the firearms they must have sold since 2009. Something fishy goin’ on.
The kids today want the guns they used in "Call of Duty" --black rifles.
And grandpa ain't gonna be around much longer which leads to Remington's other problem. Like iconic guitar manufacturer Gibson is currently facing, Remington's biggest competition on the market are used Remingtons.
Savage `Trophy Hunter’. Nikon scope included with reticle. Accutrigger. Savage accuracy, good price.
Packaging alone to send back recall’s is enough to bankrupt em ...... never seen so many failures for a firearm manufacturer ..... lawyers, litigation, legislation and over regulation oh me oh my . ......
No-Knock Warrants !?!
I bet the Dogs would have a bite First.
Marlins from the 1970’s and 80’s are the best.
Both the lever action models 30 and 336, the semi-auto 922m, 9 and 45 and the model 60’s from that era are great guns.
During those years Marlin used a serial number system that goes down as the years went on.
Take the first two digits from 100 to figure out the year of manufacture, rifle # 24xxxxxxx was made in 1976, 19xxxxxxx was made in 1981, etc.
Mine is a left hand model from the same time period. Real tack driver.
I have several times with no regrets. I'm dropping hints that I would like a Ruger .375 for Christmas. I really don't need one but I want after reading how it compared with the .375 H & H. Ruger did a good job of matching and often exceeding the specs of the gold standard of big bore rifles.
Want to improve sales? Elect another incompetent Democrat as president.
Not sure winning that bet has many upsides.
A very large (10k sqft) gun shop opened in Ft Worth a year and half ago. They are now closed. They based their business modle (news report) on the Hildabest winning the election.
This is kind of a “so what?” news item. It’s not as though Remington will cease to exist or that we’ll be left with a shortage of firearms. If Remington goes bankrupt, it will either have its debt restructured, or its assets (including its brand name) will be sold off to new management. Current investors and bond holders will take a hit, but again “so what?”. They knew the risks.
What’s really amusing is that Remington probably expected (along with most other people) that Hillary would win the election. And that Hillary would be just as good of a gun salesperson as Obama was. Instead Trump won and the threat to our gun rights declined drastically, as did fear-driven demand. Remington is suffering because of that, but the rest of us aren’t.
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