On Monday, Remington, United States’ oldest gunmaker, has filed for bankruptcy amidst plummeting sales. With this radical move, the company intends to write off approximately $700 million out of its current $950 million debt. Since 2014, Remington has been involved in various class-action lawsuits for defective components.
US Gunmaker to Give Rights to Its Lenders
Founded in 2007, Remington is regarded as being one of the oldest gunmakers in the United States of American, with over 3,000 employees and notable items such as Marlin, Bushmaster, Remington, and DPMs.
However, the company began its steep descent back in 2014, when Remington was involved in a class-action lawsuit. Following the aftermath, the gunmaker was forced to replace over 7.5 million weapons components for free, thought to be at the heart of multiple accidents in which hundreds were hurts and at least a dozen people lost their lives.
The US gunmaker has also faced public backlash following the 2012 Columbine high school shooting after the authorities determined that some of the weapons used by the gunmen were manufactured by Remington Outdoor Co.
Still, the event which led to the company’s decision of filing for chapter 11 bankruptcy on Monday is considered by most political and financial analysts to be the election of Donald Trump. As Hillary Clinton’s mandate would have meant less access to weapons, the company stocked up on weapons, hoping that sales would skyrocket as soon as Clinton would be invested.
However, considering that Trump’s candidature was supported by NRA members, his two sons being amateur huntsmen, electors became less worried about gun control, leading the company with a stock full of items which could not be sold.
With this recent move, the company intends to write off approximately $700 million out of its existing $950 million debt.
Image source: Wikipedia