Remington has already reached an agreement with its creditors to file Chapter 11 bankruptcy because of its $950 million debt.

Remington has faced a HUGE decline in sales and the credit rating firms Remington relies on say this decline is due to consumers fears that firearms will become more heavily regulated by the government.

President Trump says he will never, ever infringe on the right of the people to keep and bear arms. But since Trump’s election in Nov 2016, American Outdoor Brands Corp (Remington) has lost almost TWO-THIRDS of its stock market value. Even companies like Sturm Ruger have stock falling 25%.

Remington will get $145 million in bankruptcy financing to fund the company through bankruptcy but they plan to file in bankruptcy court in Delaware to write off about $700 million in debt.

Now keep in mind that Cerberus Capital Management LP is a private firm that controls Remington and they will lose all their ownership in the bankruptcy. Then the biggest creditors (Franklin Templeton and JPMorgan) will get equity in the company for the monies owed them.

What will happen with these folks in charge is the question. Will they get new management teams in place and continue production with a new or streamlined plan? Or will they search out a buyer?

Here is real interesting info. Remington lost some investors after one of its Bushmaster rifles was used in the Sandy Hook school shooting in 2012 that killed 20 children and six adults. After the shooting, Cerberus tried unsuccessfully to sell Remington, then known as Freedom Group, after coming under pressure from some of its private equity fund investors.

Cerberus’ Chief Exec considered a bid for Remington to stoke interest in the gunmaker from other potential acquirers in 2012. In 2015, Cerberus offered a mechanism to its fund investors that wanted to drop Remington, such as the California State Teachers’ Retirement System, to sell their stakes back to the company. INTERESTING that the teachers union are invested in firearms, huh?

Keep in mind American Outdoors Brand Corp has a lot of product lines to support whatever may or may not happen with Remington.
Smith & Wesson
Thompson Center
Gemtech
Crimson Trace
Bog-Pod
Caldwell Shooting Supplies
Franklin Arsenal
Golden Rod
Hooyman
Imperial
Keygear
Lockdown
Non-Typical Wildlife Solutions
Old Timer
Shrade
Tipton
Uncle Henry
Bubba Blade
Wheeler Engineering

Another thing to consider is Remington ammo. It may be that Remington makes more money from ammunition sales than firearms.