Gunmaker Remington faces default as Americans buy fewer firearms

The Philadelphia Inquirer ^ | November 20th, 2017 | by Joseph N. DiStefano

[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.

[vetvetdoug]

The gunmaker needs to move the facility to the South. The climate, taxes, and attitude of the North with the liberals makes the company difficult to operate.

[Bob Celeste]

"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."

Simple, A monster sale, 50% off everything.

[Darksheare]

Sadly, no.
There were a few I wanted but never had the spare cash for.

[dis.kevin]

I picked up a Remington 700 and a Marlin 795 this year, and promptly lost both in a boating accident. You see, I like to clean my guns while waiting for the fish to bite.

[BigpapaBo]

Proud owner of several critter getters myself.

M77 Gunsite scout 5.56, Mossberg MVP’s- Thunder Ranch and target models 5.56, Savage Model 11 .223.

The Savage and the MVP target rifles are can’t miss’em bolt action rifles.

[jrd]

I was thinking that I had read that Soros had the controlling interest in Remington and was going to bankrupt it; his way of gun control...

[PROCON]

Now the price of ammo needs to come down so I can stock up.

http://www.freerepublic.com/focus/f-news/3607417/posts

https://ammoseek.com/

[faucetman]

1100, 12 gauge. For home protection and anything else you want to kill.

Oh, and yes, it IS an “assault” (semi=automatic) shotgun.

[nobamanomore]

don’t kid yourself, the quality control has gone to hell at Remington, and that’s why they are in trouble.

I hear a lot of horror stories, but this one I know is fact. One of my best friends and hunting buddies from childhood is a gunsmith. He had two 700’s in the shop the week before deer season that didn’t have the throat cut in the barrel and wouldn’t even chamber a round. At the same time he had one in .223 that keyholed at 25 yards with 69 gr factory ammo. They had chambered a 1 in 14 twist barrel for a .22-250 instead of a 1 in 8 or 9 barrel for 223.

The 70’s Remingtons are a different story.

[GailA]

FAKE NEWS: those of us who CCW and love hunting, don’t trust government will always buy guns and ammo.

I will be super glad when my hand surgery Rehab is done, and full use of my Dominate R. Hand is restored, have to find a way around the FROZEN Thumb to cock my revolver. Can’t rack a automatic because of OA. Give me a break I’ll be 70 next yr, and am a small woman. Always have the 12 guage for home defense with a pistol stock. But it is NOT a Carry piece.

I live to close to Memphis, and the little town I live in has no medical we can use. Fast food and nail joints dominate.

[niteowl77]

don’t kid yourself, the quality control has gone to hell at Remington, and that’s why they are in trouble

I had a serious issue last year with a late model 870P I bought new and sent it in for repair (back when I started shooting, a new "Police" model of any Remington was almost guaranteed to be trouble free). When I got it back, it was not only fixed, but fixed very, very well. So at least some of the people left at Ilion still knew what to do and did it superbly. But yeah, overall the post-DuPont versions of Big Green seem to have specialized in introducing mediocre new products while cutting corners on the old standbys.

As a guy who was a Remington fanboy while growing up, it has been a tough thing to watch.

Mr. niteowl77

[VeniVidiVici]

Remington makes crap. The 700 I had was a POS.

[Mariner]

I have a Model 70 Featherweight in 30.06 that shoots .6 MOA out of the box...but only with 180gr bullet.

[Georgia Girl 2]

Classic Arms must have made a sweet deal with Remington as they have a boatload of them for sale.

[oldasrocks]

This makes me HAPPY. Ever since they recalled the M#597 in 17HMR and offered a Marlin bolt action in trade I wished bad for them. NO, they would not give your money back. So I should be happy getting a $135 dollar gun in trade for a $400. one?

This still burns my tail.

[vetvetdoug]

I have a Police sniper Remington 700 with the heavy barrel that was special ordered left handed back in 1991. I waited over a year to get it and when I did it performed better than any rifle I have ever owned. Varmits within 350 yards are dispensed of very well. I hate to see Remington go down the tubes.

[Vinnie]

I thought the R51 was recalled and fixed. See them for sale, neat looking little 9.

[Spktyr]

Yeah, after two years of rework. And the recall hasn’t gone well. And word is they may have to recall the recalled guns due to poor workmanship.

[Trailerpark Badass]

Remington is owned by the Freedom Group, whose goal, apparently, is to destroy a large part of US firearm manufacturing by making junk.

Remington's QC has been crap for years.

[FXRP]

They had unprecedented demand for the last eight years and are in financial trouble... Hmm...

Bad management.