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Nomercy448 07-30-2020 09:44 AM

Remington Shoe Dropped
The writing has been on the wall for a month or two now as Remington prepared for bankruptcy protection, for which has now been filed. Itís uncertain where the companyís debts will be transferred, as it appears interest from the Navajo nation has waned in recent weeks. Itís yet another unfortunate misstep in a series of such after the collapse and condemnation which happened so many years ago now with the first debt transfer to Cerberus/Freedom Group. With the closures this year of DPMS, Bushmaster, and other Remington brands, and the this additional step of perpetuating transfer of debt and equity among various creditors, the potential for a resurrection to their former legacy seems farther away then ever before.

Remington Files Bankruptcy for second time in as many years

CalHunter 07-30-2020 05:45 PM

Not looking good at all.

Nomercy448 07-30-2020 07:21 PM

I would generally expect the operating company will continue producing firearms. But they are running from the liability SCOTUS confirmed they carry, and have shifted debt carry and asset value far too much, I canít imagine there is much left buoying the business. Weíll see who ends up picking up the debt in the bankruptcy. I read comparative reports which showed the Navajo Nationís potential offer last month was about half of the valuation they offered in the 2018 bankruptcy filing, and even that has been withdrawn. So there canít be very much perceived value left dangling in the business.

But I do expect weíll see something like Winchester happening long before we stop seeing Remingtonís offered for sale. They wonít any longer be Remingtonís, as the Winís arenít winís any longer, but theyíll still be on the market, made overseas and with a completely different marketing model than they currently carry.

Alternatively, of course, another company with a long history of divestment and acquisition has been Savage. A company which was unfavorably held as the only firearms manufacturing finger in a large outdoor sports conglomeration - and the company carried so much value that the employees themselves raised stakes and bought the company from their umbrella, and are doing swimmingly. And of course, Rugerís trading price is at an all time high, with no end in sight until we get through election time.

gunsurfer 07-31-2020 01:01 AM

But it's not the first time, I think Remington will be fine :)

Nomercy448 07-31-2020 07:40 AM

Originally Posted by gunsurfer (Post 4379378)
But it's not the first time, I think Remington will be fine :)

Thatís much akin to saying to someone with a reemergence, ďbut itís not the first time youíve had cancer, I think youíll be fine.Ē

mrbb 07-31-2020 09:19 AM

I am gathering a LOT of company's will be claiming the likes, and blaming it on this virus and asking for bail out moneys to stay afloat and I bet many get it
this is just the beginning of places filing or government bailouts/and the likes!,
yet I gather all the top of these company folks will still be getting paid, bonus's and such, just like the last time the GOV stepped in to bail out the vehicle company's that cried needing help

this again IMO< will be the wave of the future for company's all the more so when there is a big problem happening in the country like this corona virus !

but NO worries I am sure
us tax payers will have the burden of saving them , with increased taxes down the road!

Big Uncle 07-31-2020 11:12 AM

This is a popular topic lately. The anti-gun crowd is cheering and the internet rumor mill is in full swing. As most of us do not know very much about the process perhaps some discussion using small words might be helpful.

A very important thing to know is that this is a Chapter 11 filing, not a Chapter 7. A Chapter 11 allows for reorganization and negotiations with creditors. A Chapter 7 is a liquidation. There is a lot of gamesmanship in a filing of this type. Will creditors be willing to play ball? People who deal with these issues are well aware that pushing too hard could result in a liquidation that would almost guarantee that the creditors will walk away with only "pennies on the dollar" or completely emptyhanded.

Selling assets (including intellectual property such as patents and trade names) could be a result leaving an empty bucket for the Sandy Hook plaintiffs. The SCOTUS is allowing those civil suits to go ahead in the Connecticut courts and the outcome is very unclear but currently there is no liability. If the Sandy Hook suits are successful it will almost certainly open the floodgates for other suits to be filed against other gunmakers. Defending the suits will be very expensive for Remington whether they win or lose. This might be a good time to sell the operating assets and let a new management company continue production. The current shareholders, the creditors, the Sandy Hook plaintiffs, the firearms industry, and we sportsmen all have a lot at stake.

There is much going on that only the insiders would know, and there are many moving parts. I am rooting for Remington to survive for another 200 years and for the firearms industry to survive the legal and political attacks. Obviously not everybody shares those sentiments.

TN Lone Wolf 07-31-2020 12:23 PM

"If you run an American gun company into bankruptcy during a pandemic where gun sales are through the roof, you shouldn’t be able to be C Suite at any company ever again." -Some guy on some website

Nomercy448 08-04-2020 06:57 AM

1 Attachment(s)
Of interest, Remington has notified the New York State Department of Labor Worker Adjustment and Retraining Notification system that they may be laying off workers due to a plant closure in September. The notice claims all 717 of 717 total employees will be affected, and the workforce adjustment class is ďpossible plant closing/possible plant layoff.Ē

NY DoL WARN: Remington Notification if potential plant closure and layoffs

Searching the notification database for 2017 and 2018, there were no Remington notices on record for the previous bankruptcy filing - which largely makes sense, since the potential buyers were known.

Largely, this notification is assumed to be satisfying a requirement such theyíre entering bankruptcy protection without an identified buyer, with expectation the company would fold in the next 60 days if a buoy isnít found, either buyer or bailout.

Nomercy448 09-03-2020 03:54 PM

I neglected to share this last month, but Iíve not seen any update the last few weeks. Looks like the last workers present in the Remington Headquarters and manufacturing site in NY will be closing itís doors, permanently under this ownership, as of Sept 29. Iíve not been able to find details, but some industry folks are pointing to an auction of Remington business components at the end of this month. What an amazing time - the entire world is on fire, and a 200 year old fire extinguisher company is closing.

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