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.
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 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 $$$$.
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.
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.
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.
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.
Well moving to the Res could have the effect of lowering the prices of Remingtons.
When Glasgow AFB, Mt, which was the mainstay of the economy in Glasgow, shut down there was the usual scramble to try get small manufacturing companies move there to help supplement the area. Among those was a company who won a government contract to refurbish M-1 Carbines, of course one of the things that helped them get the contract was a promise to employ tribal members. It was not too long after the refurb operations started that you could purchase refurbed M-1 Carbines pretty cheaply at just about any bar or back-alley. I have no idea how many M-1's were done there but I'll bet that more went out the back-door than came through the front-door.
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.
They have good money. They bought a few bankrupt coal mines in Wyoming last year too. That cost millions, in the double digits just for the assets, the operation is very pricy.
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.
Decisions to change are made one at a time. Looks like the ones they made did not work out well for them.
Righting on the wall, looks like a loose loose situation for Remington and there following. Investment bankers done well at running a good company and product line in the toilet Been rough watching this happen & unfortunately it feels like one or two more flushing cycles and she will be nothing but a memory of good thing turning into a bad BM.
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.
They have good money. They bought a few bankrupt coal mines in Wyoming last year too. That cost millions, in the double digits just for the assets, the operation is very pricy.
Probably just as smart a move, buy something that went bankrupt in an industry that is declining
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.
They have good money. They bought a few bankrupt coal mines in Wyoming last year too. That cost millions, in the double digits just for the assets, the operation is very pricy.
Probably just as smart a move, buy something that went bankrupt in an industry that is declining
I remember as a kid wanting an 870 but they didn't have screw in tubed when everyone else had had them for years. Then their 1100's only had 2.75" chambers forever. They are always slow to move and their reps at shotshow were always ignorant and seemed to have little knowledge. I always wondered if any of them had been hunting.
I told them about 2011 I really liked my new 6.5 Creedmoor and that they should chamber their rifles in it. They laughed at me and said it would never catch on because 260 was better and never caught on. I told them 260 never caught on because they were marketing it and making them in 9 twist.
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.
They have good money. They bought a few bankrupt coal mines in Wyoming last year too. That cost millions, in the double digits just for the assets, the operation is very pricy.
Probably just as smart a move, buy something that went bankrupt in an industry that is declining
I bet all you money is in Vagisil.
Beavis? Or Butthead? you can change your username, but you can't quit acting like the [bleep] you are.
You out yourself everytime. Interesting psychology, or sad life choices, you keep coming back here where people have run you off many times.
“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..
Lots of truth here. Nothing good comes out of being owned by groups like Cerebus/Freedom Group. Good old Mitch Romney used to do the same dam thing. The whole management style should be outlawed. I could not do it and sleep at night. Stripping companies, saddling them with debt and them collapsing them. No consideration of tradition, employees, communities etc. They are real vultures.
“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.
.
The reason for all the debt was the investment group that bought the company used the debt to pay themselves back for buying the company. Once they paid themselves back. They then began to vampire the company. Keep all the cash they could. Ie not pay suppliers and creditors. Basically go bankrupt on purpose. Then wipe the debt. Vampire again. Ya know rinse and repeat. Then bankrupt again. Now they are selling what’s left. If you knew banks that would do that you’d have done the same thing.
I wonder if this was the bass pro tactic for the cabelas takeover. I will never know how they convince banks to loan them money like this
They did it all willingly . For Benjamins. Selling schitt products under legacy name recognition. Dont use their nitro sporting clays shells anymore. And rem oil can be easily replaced....
Just like another company called Leupold. Riding on name recognition from their past. Putting out cheap schit at max price and cutting quality......
Maybe the Navajo,s can do something with the marlin line up. And get rid of the stigma that remington attatched to marlin. Bring back the Xs7 bolt rifles also. Remington killed them off eventually to not compete with their craptastic 700,s and the spin off models from it.
Remington has basically been a failure for 15 yrs..... Financially exploited by corporate takeovers and acquisitions.
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.
They have good money. They bought a few bankrupt coal mines in Wyoming last year too. That cost millions, in the double digits just for the assets, the operation is very pricy.
Probably just as smart a move, buy something that went bankrupt in an industry that is declining
I bet all you money is in Vagisil.
Beavis? Or Butthead? you can change your username, but you can't quit acting like the [bleep] you are.
You out yourself everytime. Interesting psychology, or sad life choices, you keep coming back here where people have run you off many times.
Proverbs 26:11
Wolves don't care about the opinions of sheep. And a liberal ass sheep you are.
I knew things were going downhill when they started promoting DPMS over Bushmaster. When they were both independent, Bushmaster always had a better reputation. Back in the early/mid 90s, Bushmaster had a better reputation than Colt.
I wouldn't miss them if they were gone. Nothing much left in my abode that says Remington on it. They've made a lot of junk over the years and I don't keep junk around. They ruined Marlin and that's too bad.
“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.
.
The reason for all the debt was the investment group that bought the company used the debt to pay themselves back for buying the company. Once they paid themselves back. They then began to vampire the company. Keep all the cash they could. Ie not pay suppliers and creditors. Basically go bankrupt on purpose. Then wipe the debt. Vampire again. Ya know rinse and repeat. Then bankrupt again. Now they are selling what’s left. If you knew banks that would do that you’d have done the same thing.
I wonder if this was the bass pro tactic for the cabelas takeover. I will never know how they convince banks to loan them money like this
Yep. I guess the question is, “How do these guys continue to get away with this??”.
You and I couldn’t get $1mil to buy a house (worth $100k), and use the other $900k on cars and fun. How does a bank/etc loan this kind of money, KNOWING there isn’t enough collateral to cover it (due diligence reviewing a company’s books would tell you that there are already several other creditors standing in line ahead of you with dibs on the collateral).
Somewhere, “fraud” would have to come into play...
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.
Coal, natural gas, gold, silver, water, and rubber tomahawks😁
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.
They have good money. They bought a few bankrupt coal mines in Wyoming last year too. That cost millions, in the double digits just for the assets, the operation is very pricy.
Probably just as smart a move, buy something that went bankrupt in an industry that is declining
I bet all you money is in Vagisil.
Beavis? Or Butthead? you can change your username, but you can't quit acting like the [bleep] you are.
You out yourself everytime. Interesting psychology, or sad life choices, you keep coming back here where people have run you off many times.
Proverbs 26:11
Wolves don't care about the opinions of sheep. And a liberal ass sheep you are.
the mighty wolf speaks, but not from Loretta Lynn's diner parking lot.
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.
This is what happens when you never leave Papa and Mi Ma’s farm.
I don't think you can blame the "vulture capitalists." Remington has made dumb decisions for 50 years, when the "gun guys" were running it.
When I was young, the only decent rifle manufacturers (except for lever actions) were Remington and Winchester. The only decent handgun manufacturers were Colt and Smith & Wesson. Now all four have been eclipsed by new upstart companies that were smarter.
The last intelligent thing Remington did was to use modern machining and parts commonality to make their products cost less. That led to the 721/722/700 rifles and the 870. Winchester--in their great stupidity--countered with the post-64 Model 70 without asking any users what they thought of it. Exit Winchester.
And then Remington. Their chief innovations were the ugly Model 600 in oddball calibers nobody wanted and gravelly Model 710. they stupidly let their .260 be stolen by Creedmoor. And after inventing the low-recoil gas operated shotgun, they let every other manufacturer in the world steal their market.
There is a misunderstanding about how private equity works. Nobody tries to bankrupt a company they buy. There's no percentage in that. Instead--by way of example--suppose they want to buy a $100 million company. They borrow 80% based on their reputation in past deals. They pay that off in five years, out of the company's profits (note I said profits) and then sell it. Guess what? They wrote a check for $20 million and pocketed $100 million. 500%.
It gets better.
If they can make the $100 million company grow, say, to be worth $200 million, now they've earned 1000%.
All that's easier said than done, and there are some other wrinkles like carried interest and management fees, but in general private equity is a better investment than stocks and bonds. You have to hedge your bets and have more than one company.
In the case of Remington, I don't know what went wrong after Cerberus bought them.
Or HS Precision for that matter. They have or had a govt sanctioned murderer as their spokeshole.
Stevelyn, Care to elaborate?[/quote]
He is speaking of the murdering scumbag Lon horiuchi who murdered an unarmed woman while she held a baby in front of her family. He was charged...but of course the charges didn’t stick.
He smoked a couple of innocents in Waco iirc as well
HS precision used him as a spokesperson. Minute of unarmed mother was their thought I suppose. Hope HS goes out of business...Lon will get his in hell
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.
This is what happens when you never leave Papa and Mi Ma’s farm.
I don't think you can blame the "vulture capitalists." Remington has made dumb decisions for 50 years, when the "gun guys" were running it.
When I was young, the only decent rifle manufacturers (except for lever actions) were Remington and Winchester. The only decent handgun manufacturers were Colt and Smith & Wesson. Now all four have been eclipsed by new upstart companies that were smarter.
The last intelligent thing Remington did was to use modern machining and parts commonality to make their products cost less. That led to the 721/722/700 rifles and the 870. Winchester--in their great stupidity--countered with the post-64 Model 70 without asking any users what they thought of it. Exit Winchester.
And then Remington. Their chief innovations were the ugly Model 600 in oddball calibers nobody wanted and gravelly Model 710. they stupidly let their .260 be stolen by Creedmoor. And after inventing the low-recoil gas operated shotgun, they let every other manufacturer in the world steal their market.
There is a misunderstanding about how private equity works. Nobody tries to bankrupt a company they buy. There's no percentage in that. Instead--by way of example--suppose they want to buy a $100 million company. They borrow 80% based on their reputation in past deals. They pay that off in five years, out of the company's profits (note I said profits) and then sell it. Guess what? They wrote a check for $20 million and pocketed $100 million. 500%.
It gets better.
If they can make the $100 million company grow, say, to be worth $200 million, now they've earned 1000%.
All that's easier said than done, and there are some other wrinkles like carried interest and management fees, but in general private equity is a better investment than stocks and bonds. You have to hedge your bets and have more than one company.
In the case of Remington, I don't know what went wrong after Cerberus bought them.
In the case of Remington, I don't know what went wrong after Cerberus bought them. Nuff said.
going forward by marketing military style guns to a younger crowd that needed to kill zombies is what got them in trouble. tried and true hunting and competition reasons are what people consider old fashioned.
Remington has made the same mistakes GM made with cars. They think they have to cover all bases of firearms so they bought Marlin for lever actions, produced ARs, Produced 1911, produced countless bolt gun styles, produced Zastava 98 to corner a CRF action, produce over-under shotguns, produce a multitude of pump and autoloader shotguns, produce law enforcement and military grade weapons, produce ammunition and brass, carry a custom shop, etc. They need to reduce all their line and go back to a simple line of 700 turn bolt rifles and shotguns at a competitive price and concentrate on affordable offerings strictly geared to hunters.
A Remington 700 is too expensive. To compete with an off the shelf Tikka, the Remington will need the action trued, bolt face trued, chambered properly, barrel replaced and trigger replaced.
If you are happy with 3 shot 100 yard groups at 1.5 inches it will be a good hunter out to maybe 200 yards.
Sure , you can find one that is acceptably accurate but that is a crap shoot.
Successive owners have pulled the equity out of the brand.
the latest remington 700 actions tend to be much straighter - but yes they should have fixed the trigger issues. The design of the action however is the best there is in terms of safety... and accuracy potential.
Tikka’s are no longer cheap, so you would think remington could retool to get there.
I’m also in the middle of doing exactly what you said - blueprinting some 700 actions.
[quote=Spotshooter] the latest remington 700 actions tend to be much straighter - but yes they should have fixed the trigger issues. The design of the action however is the best there is in terms of safety... and accuracy potential.
Tikka’s are no longer cheap, so you would think remington could retool to get there.
I’m also in the middle of doing exactly what you said - blueprinting some 700 actions.[/quot
I have had several Tikka's rebarrelled to non factory calibers for long range competition. I ask the gunsmith to check the action, he says there is nothing he can do as it is square and is as it should be. I have one factory Tikka that is < 0.4 moa 5 shots and <0.8 moa 10 shots at 1000 yards.
On the other hand Rem 700's are a cash cow for him.
Remington has made the same mistakes GM made with cars. They think they have to cover all bases of firearms so they bought Marlin for lever actions, produced ARs, Produced 1911, produced countless bolt gun styles, produced Zastava 98 to corner a CRF action, produce over-under shotguns, produce a multitude of pump and autoloader shotguns, produce law enforcement and military grade weapons, produce ammunition and brass, carry a custom shop, etc. They need to reduce all their line and go back to a simple line of 700 turn bolt rifles and shotguns at a competitive price and concentrate on affordable offerings strictly geared to hunters.
Might I ask that you stop using that terminology?
Or at least provide us with your definition of the term?
Would the latest pistol accepted by our military, and obtainable in civilian clothes, be considered "military grade weapons"
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