America's oldest gun manufacturer files for bankruptcy
- Author: Eleanor Harrison Mar 27, 2018,
Mar 27, 2018, 3:14
It filed papers in the bankruptcy court of DE last week, after suffering crippling publicity in the wake of the Sandy Hook shooting.
In most US Chapter 11 bankruptcy processes, the debtor proposes a reorganization plan to maintain its business and pay creditors over a period of time. It turned out that the shooter who killed 26 children used a Remington Bushmaster AR-15-style rifle.
Remington Outdoor went to court in DE as it continues efforts to complete a deal that will see its private equity owner, Cerberus, relinquish control to creditors.
According to the Chapter 11 bankruptcy filing, Remington still has between $100 million and $500 million of debt. Family members of the victims have filed suit against the company.
The announcement of the restructuring came two days before the Parkland, Fla., high school shooting that killed 17 people and increased demands for changes in USA gun control legislation.
Since the US Presidential election, the gun sales have declined majorly and overall h slowed.
There are no official federal statistics covering gun sales nationwide. Bloomberg has cited a research study conducted by Harvard and Northeastern universities that concluded that about half the guns in America are owned by only 3% of the adult population, with an average of 17 firearms each. Remington said it would continue operating and making guns while in bankruptcy. Remington is also one of the best-known gun makers in the world.
The company was founded in upstate NY in 1816, but later moved to North Carolina. Remington is seeking to confirm its bankruptcy plan by May 3. It is the parent company of Remington Arms, the largest producer of shotguns and rifles in the United States.
BlackRock is a major shareholder in gun makers Sturm Ruger, American Outdoor Brands, and Vista Outdoor Brands.