Gunmaker Remington Plans to File For Bankruptcy

posted by RJ Johnson - @rickerthewriter -

One of the oldest and best known gun-manufacturers in the world is set to file for Chapter 11 bankruptcy protections according to a release from the company amid declining gun sales. 

The financial restructuring plan would allow Remington Outdoor Company to remain in business while reducing its debt load by $700 million. The plan would also contribute $145 million of new capital into its subsidiaries according to the release.

According to the company, normal business operations would not be interfered with by the restructuring plan. “Payments to trade partners, employee wages and other benefits, support for customers, and an ongoing high level of service to consumers will continue without interruption,” it said.

Gun sales skyrocketed during the Obama administration because of fears new gun control legislation would be implemented. However, after Trump, a Republican endorsed by the NRA, was elected, sales fell off. 

Remington has also had to deal with a series of legal troubles over the last few years. They had to settle a class action lawsuit regarding defective that were sold. The gun company was also named as a defendant in a lawsuit for the 2012 Sandy Hook Elementary shooting because the company manufactured the Bushmaster rifle used in the attack. 

Remington is headquartered in North Carolina and has been in business for more than 200 years. 

Photo: Getty Images



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