Gunmaking giant Remington files for bankruptcy amid plunge in sales

Remington Arms has filled for bankruptcy

The timing seems like a ideal reaction to the recent backlash for the school shooting at Stoneman Douglas High School, but the cause is more likely Donald Trump.

The reputation of the Madison, NC-based firearms manufacturer took a hit in 2012 after law enforcement authorities confirmed that Adam Lanza used one of the company's Bushmaster XM15-E2S guns in the CT massacre in which he killed his mother and then went to Sandy Hook Elementary School where he killed 26 children and educators.

However, the company has no plans to stop making guns, Remington confirmed Monday morning following the formal bankruptcy announcement.

Founded in 1816, Remington is "one of America's oldest and largest manufacturers of firearms", according to court filings.

Blame for the gun maker's fall is being cast on a dramatic drop in firearms sales since Donald Trump was elected president. The company has not announced what will happen to its workers during the reorganization process, but the company said it will continue to operate while working out the details of its bankruptcy filing.

United States gunmaker Remington filed for bankruptcy protection on Sunday, a day after marchers swarmed USA cities nationwide to call for greater regulation of firearms.

"For some time, we have been engaged in discussions with Remington about the company's financial situation amid significant changes in the industry". In 2016, the MA attorney general sought information from the company on complaints and recalls, citing an investigation into its compliance with state laws and regulations on gun safety.




"Everyone thought Hillary was going to win", Dionisio said.

According to Bloomberg: "After the Sandy Hook [Connecticut] shooting, Cerberus announced it would sell the company, as its own agitated investors demanded an exit, but it failed to find a buyer".

Publicly traded competitors like American Outdoor Brands, Sturm Ruger and Vista Outdoor, have all reported massive declines in sales this year.

Another pillar of American gun industry, Colt Holding Co., also took a trip through bankruptcy in 2015. The company is now teetering on the edge of bankruptcy (AP) Terrified children are evacuated from Sandy Hook Elementary School following the 2012 massacre there. At the time, Jim Geisler, Remington's executive chairman, commented, "Difficult industry conditions make today's agreement prudent".

"This hits the pause button and perhaps Remington would reach out for a settlement rather than gamble on the Supreme Court ruling in their favor". Cerberus will lose ownership during the bankruptcy proceedings.

The lawsuit was filed in January 2015 seeking to hold Remington liable, arguing it marketed the AR-15 to the public even though it knew it was designed for military use. With the consent of a majority of the holders of the term loans and the third lien notes, Remington Outdoor will provide a $45 million delayed draw first-out first lien term loan to the operating company.

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