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    Remington declaring bankruptcy?

    Seems fitting given the "downhill" thread...

    http://blog.k-var.com/news/remington...ey-bankruptcy/
    Remington Seeking Money to File Bankruptcy


    February 9, 2018 by BloggerAdmin Leave a Comment
    According to Reuters’, 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. Remington R51 handgun black right Remington is citing fears of new regulation, but recent introductions have been plagued with problems and recalls that have likely reduced sales on other products.
    According to sources, Remingtonmissed a debt payment on one of its coupons to a creditor this week. As a result, Remington has been working with investment bank Lazard Ltd (LAZ.N) on options to restructure its $950 million debt pile, according to a Reuters report 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.

    Some potential financing sources, including credit funds and banks, have balked at coming to Remington’s aid because of the reputation risk associated with such a move, according to the sources.

    Remington, which is controlled by buyout firm Cerberus Capital Management LP, was abandoned by some of Cerberus’ private equity fund investors after one of its Bushmaster rifles was used in the Sandy Hook elementary school shooting.

    The sources asked not to be identified because the deliberations are confidential. Remington did not respond to several requests for comment. Cerberus declined to comment.

    Remington Outdoor Company logo green and white

    Credit rating agencies have warned that Remington’s capital structure is unsustainable given its weak operating performance and significant volatility in the demand for firearms and ammunition.

    Remington’s sales have declined in part because of receding fears that guns will become more heavily regulated by the U.S. government, according to credit ratings agencies. President Donald Trump has said he will “never, ever infringe on the right of the people to keep and bear arms.”

    The Madison, North Carolina-based gun manufacturer faces a maturity of an approximately $550 million term loan in 2019. Remington also has $250 million of bonds that come due in 2020 and are trading at a significant discount to their face value at around 16 cents on the dollar, according to Thomson Reuters data, indicating investor concerns about repayment.

    The term loan maturing next year is also trading at a significant discount to full value, at around 50 cents on the dollar, the sources said.

    Remington’s sales plunged 27 percent in the first nine months of 2017, resulting in a $28 million operating loss.

    #2
    What? Unpossible! No way. Who saw this coming?
    When they kick out your front door
    How you gonna come?
    With your hands on your head
    Or on the trigger of your gun?

    Comment


      #3
      Quality endures until you go cheap !

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        #4
        Let's all chip in to buy Remingto and move all manufacturing to Long Island. We can call the company FUAC Arms DBA Remington.

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          #5
          I don't see how they can raise enough cash to stay solvent. Other than Marlin (and Remington proper), I don't see much value in any of their brands. They own a bunch of black-rifle-related companies like Bushmaster and DPMS but there are a million of those out there. AAC makes some nice suppressors but there's got to be a suitor who's willing to pay for the company. The real value is in the brand and the IP. Same for Harrington Richardson. Brand value and nostalgia.

          Fact is, most of these companies could disappear entirely and hardly anyone would notice or care. Does anybody here own anything from Parker Gun?

          Henry should buy Marlin. Not to build more Henrys but to build Marlins the way they used to be built, the way they're supposed to be built and maybe even better than they've ever been built. Henry has superb build quality. Lever rifles are right in their wheelhouse. And they would finally be offering a line of side-loaders, which seems to be the only complaint about Henry rifles. Sad thing is, from what I heard, many of their most knowledgeable and talented people were cast off when they moved out of CT. But I can see a company like Henry bringing some of them back. Henry seems to know how to operate in the anti-gun, high-tax, Northeast, and still make a go of it.

          The Remington Outdoor Company family of brands

          • Remington
          • Marlin
          • DPMS
          • Advanced Armament
          • Bushmaster
          • The Parker Gun
          • H&R
          • Barnes
          • Nesika
          • Stormlake
          • Dakota Arms
          • Tapco
          • TimberSmith





          No one ever wished they didn't have a gun.

          Regards,
          Chris

          Comment


            #6
            Makes me appreciate my 80's era 870 amd 1100.

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              #7
              Maybe Hi Point will buy them out and rescue them. Fingers crossed

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                #8
                Originally posted by Pat M View Post
                Makes me appreciate my 80's era 870 amd 1100.
                And my 3 early 80's 700's .

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                  #9
                  Originally posted by Yaphank Kid View Post
                  Maybe Hi Point will buy them out and rescue them. Fingers crossed

                  Or Taurus.

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                    #10
                    I remember when you could get a Wingmaster for $299 and a 1100 for $329 from Service Merchandise. I should have stocked up.

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                      #11
                      Too poor to go bankrupt.... how does that even happen?

                      so much for Ilion...

                      Comment


                        #12
                        Originally posted by HabsFan View Post
                        Too poor to go bankrupt.... how does that even happen?

                        so much for Ilion...
                        He may not have tied the knot, but Andy certainly tightened it around their necks. Wonder what the unemployment rate will be in Ilion when Remmy goes buh-buy?

                        Comment


                          #13
                          Originally posted by Huntington Guy View Post

                          He may not have tied the knot, but Andy certainly tightened it around their necks. Wonder what the unemployment rate will be in Ilion when Remmy goes buh-buy?
                          It is going to be devastatingly sad, and without someone to buy/repurpose the factory, the Mohawk Valley will never recover.

                          Comment


                            #14
                            Originally posted by bigbore44 View Post

                            It is going to be devastatingly sad, and without someone to buy/repurpose the factory, the Mohawk Valley will never recover.
                            They’ve been on life support for years up there. I agree with you, this one could be more than they can recover from.
                            AC see’s a victory because he kicked a gun maker in the balls, he has no regard whatsoever for the lives impacted.
                            Now the remaining restaurants, shoe stores, hardware stores, car dealers, grocers and whoever else is left can close their doors too. Then the schools and the DMV and the Post Office can go.
                            Thats what a progressive socialist can do to a state. If NY didn’t have Wall Street revenues the whole place would unravel

                            Comment


                              #15
                              Couple that with the fact that Ruger seems to be hitting it out of the park with new offerings as well keeping the fan favorites classics fresh and relevant.

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