Firearms manufacturer Remington Outdoor Company has filed for bankruptcy protection. In the face of falling sales, product recalls and a failure to introduce products in trending market segments, this is not much of a surprise. Besides, we knew this was coming. The Armory reported the pending bankruptcy a short time ago.
Remington announced 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, 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.
“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 warehouse 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, claiming that it had negligently marketed “military-style” weapons to younger demographics.” (Read More)
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.”
While it is always a sad day to see a gun maker struggling or going under, Remington “Big Green” has been in a tailspin for several years.
Do you have a favorite Remington or Freedom Group gun? Why do you think Remington is failing? Is there a Remington gun you want? Share your answers in the comment section.
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Remington’s R1 1911 Executive Commander – me want ’em. Where got ’em?
How can they sue Remington for selling the gun to Adam Lanza when his mother is the one who purchased it? Adam killed his mother and then stole the gun. They need to start looking at the REAL facts and throw this frivolous law suit out on it’s ear!!
Best of luck to Remington. It is sad that such a grand old firearms manufacturer is being stressed by ridiculous lawsuits that should be thrown out immediately without any further consideration. Hope you can pull through Big Green. I just purchased another of your fine guns and will continue to do so.
This is a sad day. The Walker family has been using Remington shotguns since the first 870 was introduced. Which Remington would I like you ask? Been looking at the R-25 GII for quite some time now. Thanks for the informative article.
The new Marlin 1895 GSBL (2016) production is much better than the early Remlin SBL model (circa 2011-2012 production) with pressed checkering laminated stock. The GSBL barrel is stamped “SBL” and has the cerakote finish. The 1895 GSBL is an excellent lever-action 45-70 with all weather stock and finish.
great weapons bad management