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Firearms manufacturer Remington Arms Co. is preparing to file for chapter 11 protection for the second time since 2018 and is in advanced talks for potential bankruptcy sale to the Navajo Nation, people familiar with the matter said.
The bankruptcy filing could come within days as the gun maker makes preparations for the Navajo Nation to serve as the lead bidder to purchase Remington’s assets out of chapter 11, these people said. Founded in 1816, Remington’s namesake weapons are mainstays in hunting, shooting sports, law enforcement and the military.
The Navajo Nation—a territory with roughly 175,000 people across parts of Utah, Arizona, New Mexico—could finalize a bid for Remington as soon as Friday, one of the people said. Any bid for the company would be subject to competing offers and require bankruptcy-court approval.
The timetable could be pushed back, and an offer from the Navajo Nation isn’t guaranteed to materialize, people familiar with the matter said.
Despite cutting some $775 million in debt through the 2018 bankruptcy, Remington has continued to face high interest costs and operational issues, according to people familiar with the matter, and expensive litigation surrounding the 2012 Sandy Hook Elementary School shooting.
Remington has been operating in a fraught environment for the firearms industry, especially after the February 2018 school shooting in Parkland, Fla., that spurred a movement demanding greater gun control and prompted some big investors and retailers to reconsider their ties to the gun industry.
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The industry’s fortunes also tend to rise and fall based on the country’s political climate. Under former President Obama, firearm sales rose as enthusiasts feared gun control. Demand has generally fallen since President Trump took office, though the number of gun background checks—a proxy for sales—rose in recent months as fearful Americans rushed to stock up on firearms and ammunition during the coronavirus pandemic.
But the recent surge in sales hasn’t been enough for Remington, which makes firearms at facilities in Ilion, N.Y., and Huntsville, Ala.
Remington previously filed for chapter 11 in March 2018, transferring ownership from Cerberus Capital Management LP to creditors, including Franklin Resources Inc. and JPMorgan Chase & Co. Franklin remains the company’s largest shareholder, people familiar with the matter said.
The Navajo Nation and Franklin didn’t respond to requests for comment. Remington and JPMorgan declined to comment.
The company also continues to face litigation from families of victims of the Sandy Hook school shooting. Families of the Connecticut school killings filed wrongful-death claims against Remington, accusing the gun maker of producing and selling a weapon unfit for civilian use.
The Connecticut Supreme Court last year said that while the families couldn’t sue Remington for merely selling the Bushmaster XM15-E2S rifle used in the shooting, they could proceed on allegations the company improperly marketed the weapon to civilians for use in military-style combat against perceived enemies. Remington appealed the ruling to the U.S. Supreme Court, which declined to hear the case.
A bankruptcy sale would give a potential buyer the chance to purchase Remington free from legal liabilities, people familiar with the matter said.
Last edited by gahuntertom; 06/26/20.
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Campfire Tracker
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But the recent surge in sales hasn’t been enough for Remington, which makes firearms at facilities in Ilion, N.Y., and Huntsville, Ala.
Why in the world would a firearms manufacturer have anything to with the east coast?
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They haven't innovated in years, and market way too many different models of rifles for a company in their financial situation.
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Campfire Ranger
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Campfire Ranger
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They haven't innovated in years, and market way too many different models of rifles for a company in their financial situation. I've long been a Remington fan but this is spot-on – that is one tired-@ss company.
WWP53D
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Campfire 'Bwana
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Campfire 'Bwana
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But the recent surge in sales hasn’t been enough for Remington, which makes firearms at facilities in Ilion, N.Y., and Huntsville, Ala.
Why in the world would a firearms manufacturer have anything to with the east coast? Perhaps because for over 200 years the major firearms factories were located there, along with the tooling ans skilled labor. They're efforts to consolidate Marlin into the Remington fold was a nightmare for them and the consumer. Imagine them trying to move the whole shebang to Wyoming. The Navajos are sharp, maybe their plan is to move some of the production to the Four Corners area.
The desert is a true treasure for him who seeks refuge from men and the evil of men. In it is contentment In it is death and all you seek (Quoted from "The Bleeding of the Stone" Ibrahim Al-Koni)
member of the cabal of dysfunctional squirrels?
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Campfire Ranger
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These are boom times for gun makers.
Remington must be doing something very wrong.
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Campfire 'Bwana
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Campfire 'Bwana
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These are boom times for gun makers.
Remington must be doing something very wrong. This The Connecticut Supreme Court last year said that while the families couldn’t sue Remington for merely selling the Bushmaster XM15-E2S rifle used in the shooting, they could proceed on allegations the company improperly marketed the weapon to civilians for use in military-style combat against perceived enemies. Remington appealed the ruling to the U.S. Supreme Court, which declined to hear the case. is likely substantially eating into their bottom line. Lawyers to fight crap like that cost big $$$$.
Last edited by Valsdad; 06/26/20.
The desert is a true treasure for him who seeks refuge from men and the evil of men. In it is contentment In it is death and all you seek (Quoted from "The Bleeding of the Stone" Ibrahim Al-Koni)
member of the cabal of dysfunctional squirrels?
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Campfire Member
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These are boom times for gun makers.
Remington must be doing something very wrong. I think they are suffering from the effects of banking on a "legacy" name brand, in a market where every Joe Blow with a cnc machine is fighting tooth and nail for his slice of the pie.
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Campfire Outfitter
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I’m no Remington guy, but it is sad to hear that they continue to struggle. I bought my son an 1187 Youth Model late last year. We have shot it a ton and it’s has been flawless.
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Campfire Ranger
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Two things..........how does the Navajo nation get this kind of money, and secondly, I guess this will put a new spin on the old saying about selling guns to the Injuns.
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Campfire Kahuna
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Campfire Kahuna
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Standing "pat, does not work, look at Sears.
These premises insured by a Sheltie in Training ,--- and Cooey.o "May the Good Lord take a likin' to you"
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They haven't innovated in years.
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Campfire Tracker
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“Let’s shut down DPMS and Bushmaster in the middle of a gun rush/election year!!”
“Let’s take a profitable company (Marlin), shut down the factory, and then spend 10 years learning how to make their product correctly!”
Not to mention when they WERE making money, Freedom Group was saddling them with TONS of debt.
Maybe the Navajo buyout is a GOOD thing. Let’s see a bunch of gun-hatin’ Democrats begrudge the Navajo the right to make guns..
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They haven't innovated in years. Copying another company's product isn't innovation. Smart, but not innovative.
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Campfire Ranger
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Maybe the Navajo buyout is a GOOD thing. Let’s see a bunch of gun-hatin’ Democrats begrudge the Navajo the right to make guns..
Same thought crossed my mind. And good luck with lawsuits against the Nation.
WWP53D
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Campfire Outfitter
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Two things..........how does the Navajo nation get this kind of money, Probably from casinos. But in the scheme of things, it's really not that much money. Firearms is a tiny industry.
Politics is War by Other Means
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Two things..........how does the Navajo nation get this kind of money, and secondly, I guess this will put a new spin on the old saying about selling guns to the Injuns. Plenty of oil and gas revenues. Same for the Utes. Throw in a casino or 2 and,,,,money.
The degree of my privacy is no business of yours.
What we've learned from history is that we haven't learned from it.
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Maybe the Navajo buyout is a GOOD thing. Let’s see a bunch of gun-hatin’ Democrats begrudge the Navajo the right to make guns..
Same thought crossed my mind. And good luck with lawsuits against the Nation. Like that provided they install good management..
-OMotS
"If memory serves fails me..." Quote: ( unnamed) "been prtty deep in the cooler todaay " Television and radio are most effective when people question little and think even less.
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Campfire Kahuna
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But the recent surge in sales hasn’t been enough for Remington, which makes firearms at facilities in Ilion, N.Y., and Huntsville, Ala.
Why in the world would a firearms manufacturer have anything to with the east coast? I thought you were the smart money man on here, no? Do you own any firearms? Most were started in old east. Ever look at the barrel stamp, Connecticut, Mass, New York, etc
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Campfire Outfitter
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Standing "pat, does not work, look at Sears. Business today is like walking UP the DOWN escalator. If you are not moving forward, you are going backward. There is no "neutral".
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