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NCFUBAR
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Remington Outdoor Group Files Bankruptcy Protection
NCFUBAR
Senior MemberPosts: 4,324 Senior Member
https://money.usnews.com/investing/news/articles/2018-02-08/exclusive-us-gunmaker-remington-seeks-financing-to-file-for-bankruptcy-sources?src=usn_fb
Hate it for the employees but the the bean counters and executive level just didn’t get it ...
Remington Outdoor Company Inc, one of the largest U.S. makers of firearms, has reached out to banks and credit investment funds in search of financing that will allow it to file for bankruptcy, people familiar with the matter said on Thursday.
The move comes as Remington reached a forbearance agreement with its creditors this week following a missed coupon payment on its debt, the sources said. The company has been working with investment bank Lazard Ltd on options to restructure its $950 million debt pile, Reuters reported last month.
Remington is seeking debtor-in-possession financing that will allow it to fund is operations once it files for bankruptcy, the sources said. The size of the financing and timing of Remington's bankruptcy plans could not be learned.
Hate it for the employees but the the bean counters and executive level just didn’t get it ...
“The further a society drifts from truth ... the more it will hate those who speak it."
- George Orwell
- George Orwell
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Btw - thier sales fell because they have QC issues that make Chinese knockoffs look good.
I think the Trigger recall is the straw that broke the camel's back. I don't see how they can throw it out the window.
They've been denying there was a problem for 60 years and in the face of the designer who offered to design another trigger. It finally came full round and bit them on the ass. I hope this doesn't bring about their end, because there's too many great firearms involved, along with some great American Traditions. But I think it was like what I saw at the plant I worked at. Those in charge at the moment knew they figured they'd be dead and gone by the time the :fan: so they acted like no problem. Well in the end it always catches up. So here we are. When they decided to fix the problem it costs them too much.
Son that's somebody with nothing to do with his time but keep me in trouble with mom.
They're not the first one to do that! GM thought that smaller fuel efficient cars were just a fad and they refused to retool to build them and when they got spanked by the Japanese automakers and gave in, it cost a heck of a lot more to retool.
"If you get it and didn't work for it, someone else worked for it and didn't get it..."
And had a much better trigger and a great selling point.
Son that's somebody with nothing to do with his time but keep me in trouble with mom.
That's what I'm hoping. But they have a lot of sin to absolve, to say nothing of a few thousand law suits to settle.
Son that's somebody with nothing to do with his time but keep me in trouble with mom.
It is my understanding that the settlement is still on appeal. If so, a bankruptcy filing would trigger an Automatic Stay of all pending lawsuits against it.
Ultimately, a bankruptcy filing is probably going to negatively impact all of Remington’s unsecured creditors including the litigants.
It will be interesting if the post-bankruptcy owners (who are almost certainly going to be Remington’s current secured creditors) will decide that honoring the settlement and warranties is good business or not.
When GM failed, the New GM was largely able to push pre-bankruptcy product liability claims to OldCo.
https://www.freep.com/story/money/cars/general-motors/2015/02/13/gm-heading-back-bankruptcy-court/23394985/
Every bit of this is true. To run a gun company successfully, you have to know and understand guns and shooters. Accountants need not apply. Look at how Henry was resurrected from the ashes.
While a lot of people deserve blame, Cerberus’ purchase of Remington doomed them.
2007 - “Remington Arms Co. Inc. has agreed to be acquired by private equity firm Cerberus Capital Management LP for $370 million. The purchase priced includes $118 million in cash as well as the assumption of $252 million of debt, including a revolving credit line and subordinated notes.”
While the press release mentions a $118m cash payment, most of that came from debt. Furthermore, by 2017, they were saddled with nearly $1B in debts as Cerberus was paid back its initial investment (and then some).
https://dealbook.nytimes.com/2013/12/09/cerberus-may-offer-divestment-in-firearms/
“The Freedom Group’s owner, which had already earned a profit from its investment through a dividend payment, had been pushing for what some bidders deemed a high valuation of the company. However, some people briefed on the sales process argued that the expected price was based on a multiple of earnings lower than what some of the gun maker’s peers commanded in the public markets.”
Until Remington is owned by a firearms company that knows how to properly run a firearms company they will have bean counter issues to deal with.
There you go.
They are so out of touch with today's gun owners, it's crazy.
I LOVE Remington guns....grew up on them. Have a safe full of them. I buy them frequently. Used.
I haven't bought a new one in at least 10 years.
How did they miss the AR craze so badly? Unbelievable. They catalog ONE AR 15, at $1199 msrp.
They certainly have been sliding!
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Cerberus will give up ownership, that's a good start
Not sure that JP Morgan will be a better owner.
-Mikhail Kalashnikov
Yep right on.
Son that's somebody with nothing to do with his time but keep me in trouble with mom.
I agree cpj. If they make them cut rate I would probably buy some of their junk as long as t was still accurate and spruce it up a bit.
Son that's somebody with nothing to do with his time but keep me in trouble with mom.
I agree with cpj on this. Remington and Savage both designed production rifles that would compete in sales and and had design features that made them inherently accurate. Neither one has the aesthetics of a pre-64 Model 70, but either one with good loads and some simple tweeking will beat it in the accuracy department. While Remingtons have suffered fit and finish, they're still accurate or at least potentially. Even some out of the box Savages need some tweeking nowadays.
Son that's somebody with nothing to do with his time but keep me in trouble with mom.
When I tried to by a Marlin 45-70, it looked like the $700+ Rifle had been assembled by monkeys and inspected by Mr Magoo. Although they are starting to look better, they QC is still poor for the price they charge. Then the R51 fiasco happened (twice).
Even when I have had the opportunity to get good deals on Remington’s on sale, I moved my business to other companies.
The good news: lenders who take over companies in deals like this usually try to find a new owner quickly. With $700m in debts wiped off the books, Remington no longer needs to pay $ millions per year to service that debt.
Hopefully, someone who knows manufacturing takes over soon.
As usual you have a point. As long as i can find Model 700s for under $400 in the ADL Synthetic configuration I'll keep buying them as needed. It is one Pig that looks good in lipstick.
Son that's somebody with nothing to do with his time but keep me in trouble with mom.
Hopefully they will sell H&R/ NEF to someone that will start making the Handi-Rifles again.
-Mikhail Kalashnikov
FIFY :tooth: I NEED a couple or three shotguns in 20 and 12 gauge for donor actions for rifle cartridges they never have offered in the Handi-Rifles.
Say a .460 or .500 S&W.
Yes, they would! And the craze for the 10mm would probably justify that chambering. They need to do something with NEF that no gunmaker has done in over half a century. And the internet would make it easy, fast, and simple. Take an online poll for about 3-4 months with a large list of chamberings and let people vote for their choices. Chamberings with most votes get made. Those with not enough votes to make the cut get made on a special order only basis. That would give the people wanting one what they want and NEF wouldn't be making stuff NOBODY wants.
Heck yes, I’d buy one in 10mm
-Mikhail Kalashnikov