Remington possible bankruptcy


#1

#2

It would not be the first time for Remington.


#3

As far as ammo goes, it is telling when Winchester continues to roll out a wide variety of new & revolutionary projectile and load types over the past several years, most recently the Deer Season & Hybrid-X lines, whilst Remington spins it wheels with aborted product launches (Black Belt pistol ammo), and failed lines (Hog Hammer).


#4

Similar to Colt in the fact they haven’t had any really new ideas for the firearms market either. There’s a reason Colt has gone bankrupt so many times: lack of innovation and only wanting to sell 1911s and ARs.

For Remington, lack of quality control has really taken its toll.


#5

Well, one thing Remington has done recently was a promotion on 9mm Luger ammunition. Firearms and ammunition competition in the Jacksonville, Florida area is very cut-throat, and I wasn’t surprised when my local Academy Sports & Outdoors ran a special promotion for Remington “Buckets 'o Bullets.” The store had marked down a plastic bucket of Remington 9mm Luger 115 grain, FMJ, MV 1145 fps cartridges, headstamped R-P 9 mm LUGER, 350 rounds in each bucket, “Box” code B09EA, to $69.99. The deal was that Remington would send a rebate check for $30 for each bucket bought, limit three. I bought three, of course, and got a check from Remington last week for $90. So at least they are trying something. BTW, the white plastic bucket is marked “350 UMC CENTERFIRE,” the check was from Remington, and the headstamp was Remington-Peters, so I guess they had all bases covered.


#6

I have also noticed some serious sales being run on Remington ammo over the past 3 or 4 months in the form of the bucket 'o bullets deals via Dick’s Sporting Goods & others as Mel mentions, and also Cabelas had a crazy sale on Remington rifle ammo - so much so that the Cabelas retail prices were lower than any of my distributor prices, so it had to be a factory-incentivized rebate thing going on back through the retailers.


#7

Remington at present has accumulated a debt load of nearly $1B which they cannot pay. They are now out beating the bushes for a White Knight to rescue them by supplying enough funding to allow them to go into Chapter 11 bankruptcy and develop a reorganization plan while still remaining in operation. They are unlikely to find one. Cerberus seems to have turned their back and walked away. That means it is more than likely Remington will be forced to go into Chapter 7 bankruptcy and liquidate. Who knows what will happen then?
Is anyone interested in buying the Lonoke ammunition facility? I doubt it.


#8

Current market conditions and recent events in Florida won’t help the company or receivers.

Don’t be surprised if a foreign buyer with an existing market presence in the US steps in and buys Remington, either during re-organization or liquidation. Their plants may be of limited interest to a buyer. However, Remington’s intellectual property rights - name, trademarks, and particularly their patents - are far more likely to attract attention.


#9

The latest item I saw called for the creditors to take over the company and provide funding for continued operation in Chapter 11. Whether the creditors will consent to that is unknown, but they may well have if that’s the proposal which is going to the Federal bankruptcy court.