Gun maker Remington files for bankruptcy

Remington, one of nation's top gunmakers, files for bankruptcy

Remington, one of nation's top gunmakers, files for bankruptcy

The company also came under fire after a Remington rifle was among the weapons in the arsenal used in the Sandy Hook Elementary School shooting in 2012.

Attorney Katie-Mesner Hage, who is representing the class-action suit, claimed in a statement "We do not expect this filing to affect the families' case in any material way".

While Remington was cleared of wrongdoing, the protracted legal battle caused many investors to divest from the company.

The same style of rifle (via Smith & Wesson) was used in the February Parkland shooting, where 17 were killed. While this makes sense, it also appears a bit ironic for those whose income depends on selling guns and draws attention to the efficacy of fear as a mechanism to boost gun sales. Remington employs about 3,500 workers.

The balance sheet restructuring will be effectuated through a pre-packaged joint plan of reorganization to be filed in the United States Bankruptcy Court for the District of DE in connection with the Company's filing of voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. Cerberus Capital Management LP, the private equity firm that owns Remington, tried to sell the company after that shooting and failed to find an interested buyer.

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Remington, a two-century-old gunmaker, has seen a succession of owners.

Gun sales across the industry have fallen since President Trump took office. It is estimated that the company is under $1 billion debt. In 2017, firearm background checks, which are used as a barometer of gun sales, declined faster than they have since the Federal Bureau of Investigation began compiling the data 20 years ago. Throughout the bankruptcy proceedings, I have been in close contact with Remington's team. But half of those guns are owned by only 3 per cent of the population. Time will tell if the bankruptcy is the first of many in the gun industry.

"Remington has reassured our office that the Chapter 11 filing is exclusively for the goal of restructuring debt to equity", she said in a statement Monday.

Profit growth at Sturm, Ruger & Co.is under severe pressure and the company's shares are down 18 per cent this year.

Some of Wall Street's heaviest hitters are stepping into the national debate on guns.

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