Remington is (was perhaps) one of the most revered firearms manufacturers in the America. Known as “Big Green,” Remington has sadly become Big Red, sinking into massive debt. Although it was widely reported that Remington was having significant financial difficulties, it is still sad news to read that Remington has filed for bankruptcy. While bankruptcy is a financial standing and does not necessarily mean out of business, it does not bode well for Remington’s or the Freedom Group’s future. Is anyone else thinking “Colt” and it’s financial woes and attempts to retain the name and product lines? Remington announced that it would file for Chapter 11 last month but the actual filing was delayed after the Feb. 14 shooting at Marjory Stoneman Douglas High School in Parkland, Florida.
The WSJ reported that Remington officials plan to hand over the reins to its creditors in exchange for writing off most of the company’s debt. Cerberus Capital Management LP bought Remington for $118 million in 2007, assuming $252 million in debt in the process.
Fox News Reports: “Cerberus later formed a holding company called the Freedom Group Inc., consisting of Remington and other firearms manufacturers—including Bushmaster, which Cerberus had purchased in 2006.
It was reported that the gun industry is facing low demand and high stock after Donald Trump’s unexpected election to the presidency in 2016. According to the paper, firearms manufacturers boosted output in the run-up to the election, expecting that a Hillary Clinton victory would lead to a boost in sales ahead of tighter gun laws.
In 2016, families of the Sandy Hook victims filed a wrongful-death suit against Remington, claiming that it had negligently marketed “military-style” weapons to younger demographics.” A trial judge dismissed the initial lawsuit, but the plaintiffs appealed to the Connecticut Supreme Court, which is considering the matter.
Katie-Mesner Hage, an attorney with Koskoff Koskoff & Bieder, which represents Sandy Hook families in their lawsuit against the gun manufacturer said in a statement that “We do not expect this filing to affect the families’ case in any material way.”
Will Remington and the Freedom Group survive under the management and supervision of the creditors? Which Remington model will you recommend purchasing before its possibly gone? Share your answers in the comment section.