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Seems Remington Arms Co. has done, or is about to do, it again. Go broke, that is.

In 2018, fresh off the filing that shed the company of the last vestiges of the Cerberus Financial crowd, a burst of optimism had people predicting Remington was “back”.

The company moved into the massive Huntsville, Alabama, facility that formerly housed a Chrysler division. The State of Alabama proudly rolled out the red carpet, tax incentives, and training programs for their newest corporate citizen, all predicated on the rosy projection that Remington would bring jobs, jobs, jobs to the area.

It never materialized. And for the past year, we’ve heard rumblings that Alabama was trying to figure out what to do about their underperforming corporate citizen.

On Friday, news leaked that Remington was once again prepping for a bankruptcy.

Preparations, according to Dow Jones and “people familiar with the matter” had already progressed to the point that the prime candidate had been identified and “advanced talks” were underway.

The potential purchaser: The Navajo Nation. If that’s the case, it’s their second attempt at acquiring Remington. They were among the interested parties in 2018.

The Navajo Nation and its 175,000 citizens may be scattered across Utah, Arizona and New Mexico, but they have formidable financial resources, along with something that could be the magic bullet missing with other potential suitors: sovereign immunity. Being a sovereign nation would help eliminate the litigation threats that have plagued Remington for almost as long as anyone cares to remember.

Remington still faces lawsuits from the victims of the Sandy Hook school shooting. The Connecticut Supreme Court ruled that the company couldn’t be sued for manufacturing the Bushmaster rifle used in the shooting, but could be sued under Connecticut’s Unfair Trade Practices Law. The claim asserts Remington knowingly and improperly marketed a gun designed for the military to civilians.

Remington appealed the case to the Supreme Court. As is now apparently standard practice for “the Roberts Court”, it declined to hear the case.

The same “people familiar with the matter” say the bankruptcy purchaser could have a chance to buy the company without the fear of the ongoing litigation.

When you look at buying gun company, the P&Ls are important, but the fact you’re inheriting the potential liabilities weighs heavily on the business evaluation.

Remington, with its recent history of litigation, might scare off a majority of today’s more image-conscious investors. The Navajo Nation, being sovereign, brings a different set of circumstances to the negotiating table, along with a boatload of cash.

We had already heard from Remington that something would be announced over the next few days. That notice said the announcement could come as early as last Monday. It will be difficult to delay announcing something much longer.

When the Dow Jones report broke on Friday, our query to Remington brought a terse response: “no comment”. Radio silence is to be expected at this point-from all interested parties.

But it seems the financial community was given far more than a hint at what was ahead. And it is no coincidence that the Navajo’s interest was apparently included in those “hints”.


So what would a Navajo acquisition look like?

With their business acumen and consultants, it probably wouldn’t look very different from most other offers price-wise. But the Nation’s unique status would introduce two variables: sovereign immunity and tribal law.

Interpreting what sovereign immunity really means, especially in a business negotiation, is an assignment I’m not equipped to complete. It is a complicated relationship between the various tribes and the federal government. While their businesses generally operate under the U.S. tax codes including taxes, there are some very notable exceptions.

Tribes under the terms of sovereign immunity are shielded from litigation much the same as states. That protection “usually extends to suits arising from a tribe’s ‘off-reservation’ or commercial activities, including the activities of an off-reservation tribal casino.”

With regard to business endeavors, federal courts, according to the American Bar Association, generally do not distinguish between “governmental” and “commercial” activities. “Numerous courts,” says the ABA in Doing Business in Indian Country: A Primer “have thus held that tribal sovereign immunity extends to tribal casinos, businesses, schools and corporations (my emphasis).”

While it’s not absolute, there’s a “strong presumption” against any waiver of that immunity, and it can only be abrogated otherwise by an “unequivocal expression” of Congress.

Tribal officials and employees acting in their official capacities and within the scope of their employment are also shielded from damage suits and requests for injunctive relief. They’re also immune from subpoena enforcement to “compel production of tribal witnesses or documents.”

This isn’t an unprecedented offer. The Navajo Nation was interested in acquiring Remington in 2018.

Former Remington officials told me their offer was strong- an all-cash deal- but was rejected because the Navaho didn’t want some of the companies and made that clear in the negotiations. If they won, those companies would be shuttered. They also made it known that should they win the bidding, they would no longer sell AR-rifles to “civilians” and would pursue smart gun technology.

In 2018, those pronouncements were deal breakers with Remington. Today, the companies primarily producing those rifles have already been shuttered - by Remington. Essentially they exist only as brands.

Whether that makes the case the Navajo Nation knew more about what needed to be done than the Remington board of directors makes for an interesting topic of discussion.

Whatever position taken on that question, one thing is certain: Remington, as it sits today, is considerably less valuable than it was in 2018, despite having shed most of its crushing $950 million dollar indebtedness. Debit is quantifiable. Legal liability is a crap shoot.

Whomever is approved by a bankruptcy court won’t be paying anything approaching the offer numbers rejected in 2018. Whether that lures back one or more of the gun companies that also expressed interest in 2018 is also a question that won’t be revealed until after a formal filing.

The Navajo Nation’s interested (we’ve had no luck getting in touch with them at this point), and their prescient intent to close down several brands would make a pretty compelling case for their business competency. Further, their financial strength should factor in with a bankruptcy judge looking to keep the company running.

Today, many traditional investors shy away from anything associated with firearms. And the fact that “traditional investors” haven’t proven particularly adept at running gun companies anywhere except into the ground may also factor into a bankruptcy court’s decision.

Interesting times, for certain

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Remington has been a dead man walking for a good solid 5 years now.

They've been managed by people more stupid than Dan Cathy for a long time before that.


If you are not actively engaging EVERY enemy you encounter... you are allowing another to fight for you... and that is cowardice... plain and simple.



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Originally Posted by CashisKing
Remington has been a dead man walking for a good solid 5 years now.

They've been managed by people more stupid than Dan Cathy for a long time before that.


Damn shame actually, I love the 700 platform.


If you are not actively engaging EVERY enemy you encounter... you are allowing another to fight for you... and that is cowardice... plain and simple.



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Damn shame actually, I love the 700 platform.[/quote]


I agree on the R 700.


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Originally Posted by CashisKing
Remington has been a dead man walking for a good solid 5 years now.

They've been managed by people more stupid than Dan Cathy for a long time before that.



I do believe Remington has been a dead man walking manufacturer much longer than 5 years. Remington did not recognize market product changes or the effect of an aging population on their "Sporting Arms business" almost 20 year ago.

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Why would the Indians want to buy a dead horse.

For all intents and purposes Remington is gone and it appears that the way the Navajo's want to go it will be even worse. Remington will be the new Manbun Gun Company.


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A sad state of affairs for sure. Mike Walker is probably rolling in his grave.

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I would think that between ammo, the 700, the 870, the Versa Max, and the V3, a viable and profitable company could emerge, albeit much smaller a much smaller one. Unfortunately for Remington, they don't have a noticeable presence in the pistol market, but there looks to be enough there to remain a going concern. With decent management, of course.


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Originally Posted by doctor_Encore
Originally Posted by CashisKing
Remington has been a dead man walking for a good solid 5 years now.

They've been managed by people more stupid than Dan Cathy for a long time before that.



I do believe Remington has been a dead man walking manufacturer much longer than 5 years. Remington did not recognize market product changes or the effect of an aging population on their "Sporting Arms business" almost 20 year ago.



Spot-on.


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OK, Bushmaster disappears. With so many AR companies out their it would not be missed. Smart Gun tech is the future but I think the opening moves will be a total fail. The fact that there are so many guns out there that are not "smart guns" makes the idea rather ridiculous.


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I think the problem is that the people that actually own Remington don't care. They just want to keep bleeding as much money out of the company as they can and then use Remington as a nice big tax break when the place folds for good.

It's a real shame because like others here I've used Remington products for many years.

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Originally Posted by 22250rem
A sad state of affairs for sure. Mike Walker is probably rolling in his grave.




I bet most on the Fire don't know Mike Walker.

Once Mike Walker left Remington and the "bean counters" that played golf on weekends instead of shooting, that was the beginning of the end. They went for cheap and market share. I could write pages on the junk Remington has produced and claimed it was within their specs.


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Originally Posted by Armednfree
OK, Bushmaster disappears. With so many AR companies out their it would not be missed. Smart Gun tech is the future but I think the opening moves will be a total fail. The fact that there are so many guns out there that are not "smart guns" makes the idea rather ridiculous.

You are half-right on the smart gun garbage... but the Navahoes are not looking in the right directions. With sovereign immunity it is not a defensive move for them. The key should be making money and dropping the current market hotspot makes no sense.

Heller should make it very clear the most common purchase today is safe.


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They could be saying that with no real intention of doing it. Work on it a bit and then abandon the project. Just something said for some political reason.


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Originally Posted by Armednfree
They could be saying that with no real intention of doing it. Work on it a bit and then abandon the project. Just something said for some political reason.

I believe you are correct!


Mark Begich, Joaquin Jackson, and Heller resistance... Three huge reasons to worry about the NRA.
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Strange laws. Never heard of Jack Daniels having a lawsuit over drunk drivers. Liberals going after the gun industry using the court system. This is wrong in so many ways. Hasbeen


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Originally Posted by Sitka deer
Originally Posted by Armednfree
They could be saying that with no real intention of doing it. Work on it a bit and then abandon the project. Just something said for some political reason.

I believe you are correct!


Or, they know more than we do?

Once another Democratic administration takes over, and it will happen sometime in the future, always does, the push won't only be to end the "gun show loophole". It will be to end ALL private firearms sales. The next step will be along the lines of Cali's "list of approved firearms" and if something similar goes Federal bet your bottom dollar that if there's any progress on "smart gun" crap, that will be included on the new Fed list of "approved firearms".

In other words, no way to transfer older firearms, except perhaps they grandfather in family transfers. Want a gun? Go to the store and get the new "smart one"...............




Manufactured by................


Remington.

Maybe they come in first with a really strong patent and then other companies must pay them a royalty?

Sure thing Heller and other standing cases make a strong point for what We the People should be allowed to own, carry, and use.....but if the Dems can get another SCOTUS judge or three seated..................all bets are off.


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In it is contentment
In it is death and all you seek
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Oh, don't think the new "smart gun" technology won't likely include a tracking system.

If it's electronic smart gun crap, then any attempt to disable the tracking system witll render the firearm inoperable.

Think that can't happen???

I don't think that way.

Better hope The Donald gets elected again..................

and even then, given another big shooting event I don't trust him to even put a stop to such ideas. And I'm certainly not 100% sure of his appointments to the High Court after this last go round of them passing on hearing 2A cases.


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In it is contentment
In it is death and all you seek
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Remington BOR: Okay ladies and gentlemen, how do we pull out of this hole..looking for ideas, think outside the green box!

Board Member: Let's make a deal with a bunch of drunk indian's to design, engineer and market our weapons.

BOR: <clapping wildly> fantastic fk'ng idea, BRAVO!!!


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Originally Posted by RDW
Remington BOR: Okay ladies and gentlemen, how do we pull out of this hole..looking for ideas, think outside the green box!

Board Member: Let's make a deal with a bunch of drunk indian's to design, engineer and market our weapons.

BOR: <clapping wildly> fantastic fk'ng idea, BRAVO!!!



RDW,

Humor?.........I hope?

You do understand the Nation is not a "bunch of drunk indian's".

You read the article? If, as stated, a bankruptcy court judge might think it a good idea for them to be the buyers, it must mean they are a pretty going concern. They seem to have had a good shot at it in '18. Don't bet against them this time, on the thoughts they're a bunch of drunks.


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)

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