Home Forums Hunting & Shooting Hunter's Campfire Remington Bankrupt ??

It happened 8 years ago. Has the suck sank in yet?

I was meaning that if Remington doesn't get funding to continue production through bankruptcy the supply of Barnes might get a little thin.

^^^^^^^THIS^^^^^^

I have worked for two companies owned by Private Equity firms (like Cerberus) in the past five years. A PE firm's typical M.O. is to bleed as much cash out of the company as possible, "polish the financial books" for a couple quarters and then flip it to another PE firm. Rinse and repeat... Mediocrity is a way of life in a company owned by a PE firm because all available cash is flowing directly to the PE "partner"... Stupid decisions that give a short term boost to cash flow that are not long term sustainable are common.

Think of a giant lamprey eel that is attached directly to your bank account...

HUGE +1.

Ever watch the Sopranos? Remember when the guy who owned the sporting goods store got into heavy debt with Tony and his crew in a card game? They took over his store and made him take out huge loans which they gave to themselves. Then they sold a lot of his merchandise out the back door at a loss for quick cash. Then when the banks wouldn’t loan any more money and the creditors were coming to lock the doors, they burned it down and collected the insurance money.

That is pretty much what a PE firm does to a company. But instead of gaudily dressed overweight Italian guys, it is Wall Street MBAs in $3k suits. And of course, it is all legal.

When you can buy lobbyists and influence in swamp D.C. you can make anything you want legal. Why do you think medicine in America is so expensive. The stock holders want a return. A BIG return.

kwg

That 4 line paragraph sums up perfectly what PE firms do to companies. Run up debt, HUGE bonuses for directors, sell off the scraps, move on.

I'm both an MBA and a rifle looney, being either isn't that big a deal.

Remington isn't doing a good job of building firearms that can successfully compete with Ruger and Savage on price and quality.

You and me both. Love the gun, though.

My, how times have changed. I remember when if you had a Remington anything you were in good shape. But that was fifty years ago. Sad!

What I've seen is a slight variation. First, buy it with debt, then bleed as much cash as possible, take on more debt, give large bonuses and pay days to key people, then file for bankruptcy.

Yeah, about eight years ago.

I pray to God they didnt.

One would think that the ammo flow alone could more than keep them afloat. Never researched the company. Could be they're separate entities.

Did you ever hear of the guy selling gasoline for $.10 less per gallon than it cost him? He figured he would make up the loss in volume.....

Big Green shutting down wouldn't effect me since my rifle buying days are about over and even if they weren't I wouldn't buy any of their new stuff and the only component of theirs I use are primers which I have a lifetime supply of but I hate the idea of loosing them.
Shame but much like our country I fear the damage is done at this point.

Done eight years ago.

Cerebus/Remington, formerly Freedom Group, owns Remington, Marlin, Bushmaster, DPMS, H & R, Dakota Arms, Para USA, Barnes Bullets, Tapco, Parker Gun, Mountain Khakis, Timber Smith.

Cerebus has been trying to sell Off Freedom Group/Remington since 2012 with no takers. Robert Nardelli, formerly of Chrysler, Home Depot, and GE and Freedom Group, was named by Conde Nast in 2009 as one of the worst CEOs of all time.

their stuff has been junk for a long time anyways. same thing with another company, vista outdoors.