Remington once again files for bankruptcy
The troubled US-manufacturer Remington Outdoor Co. has filed for bankruptcy for the second time in two years with plans to sell the 200-year-old maker of firearms.
The company commented that reduced gun sales prevented it from making capital even after streamlining its finances in its first bankruptcy.
Remington took $437.5 million in sales last year, about half the business it did in 2016, according to court papers filed in Decatur, Alabama.
The company owes numerous moneylenders more than $250 million, including a $12.5 million debt to Remington’s home town of Huntsville, Alabama, which put up a loan to help enhance a manufacturing plant there.
The Chapter 11 filing allows the company to continue to operate while it develops plans to turn around the business and pay its creditors.
Remington will continue its search for a buyer, which began months before seeking court protection from creditors. The company landed one potential offer for all of its assets, but the unnamed suitor delayed making a final decision after the deal became public, company chief executive Ken D’Arcy said in court papers. The Wall Street Journal reported that the company held talks with the Navajo Nation about a sale, but those discussions fell apart.
D’Arcy said the company is continuing to talk to its unnamed potential buyer as well as others.
Remington went bankrupt before in February 2018. It was hit by rising debt and overstocked gun dealers, who were left with unsold weapons after the surprise loss of Hillary Clinton -- an advocate of gun control -- to Donald Trump in the 2016 election. Cerberus Capital Management had acquired Remington in 2007, and the firearms and ammunition giant accumulated nearly $1 billion in debt.