Remington Files For Bankruptcy

[hammerdrop99]

Saw this on Fox News this morning.

http://www.foxnews.com/us/2018/03/25/gun-maker-remington-files-for-bankruptcy.html

[monkeylizard]

Yep. It has been coming for a few months now:

 

[tacops]

Remington has been losing ground for a long time now.  Even during the recent period (Obama Years) of an astronomical volume of firearm sales.  Yet your leftist media is reporting it as though it is the result of recent pressure/events of anti-gunners.  They will cheer as though they accomplished something and those in the middle will know no different.

[FUJIMO]

Libs are taking a victory lap and calling this a win for their side. Fallout from the Newtown Massacre they're calling it.

[DaveTN]

This bothers me more than seeing bump stocks banned or the age raised. Every American manufacturer we lose puts use closer to guns being unavailable, extremely expensive or just plain junk. I hope Remington can recover.

[mikegideon]

Not over yet. The brand has still LOTS of value. If they can bankrupt their way around all the BS lawsuits, more power to 'em. Wouldn't hurt if they chased off some Wall Street scum in the process too. 

[MacGyver]

Wall Street doubled down on this one. 

Cerberus has been trying to get out of this for a couple of years.  JP Morgan and Franklin Templeton Investments basically took this on for .25 on the dollar.  They had already negotiated a haircut with lenders.  

Basically the billion dollars of debt the hedge fund saddled them with in the various buyouts sank them when revenues sank over the last few years.

But note, that the billion dollars didn’t just vaporize - it went into someone’s pockets.

Some brands could go away here. Bushmaster and DPMS are at risk. AAC and Tapco are owned by the brand as well.

They own Marlin, too.

 

[Chucktshoes]

21 minutes ago, MacGyver said:

Wall Street doubled down on this one. 

Cerberus has been trying to get out of this for a couple of years.  JP Morgan and Franklin Templeton Investments basically took this on for .25 on the dollar.  They had already negotiated a haircut with lenders.  

Basically the billion dollars of debt the hedge fund saddled them with in the various buyouts sank them when revenues sank over the last few years.

But note, that the billion dollars didn’t just vaporize - it went into someone’s pockets.

Some brands could go away here. Bushmaster and DPMS are at risk. AAC and Tapco are owned by the brand as well.

They own Marlin, too.

 

I’m gonna call Bushmaster as toast. That’s a brand name that is too toxic to salvage. 

[MacGyver]

You're probably not too far off.  Cerberus had been trying since Sandy Hook to find someone to buy it and couldn't.

Private equity can be really dangerous. As an old mentor told me once, "debt magnifies the consequences of bad decisions."

A lot of money came into the gun business for a while thinking gun owners were an easy sell. And for the most part, for a while they were right. How many shops did we have open in middle Tennessee that weren't owned by gun people at all - rather they were owned by bankers. But then times changed - and your business fundamentals actually had to prove sound.

At least now we know that this experiment didn't work any better with the giant companies than it did the little gun shops.

[gregintenn]

A big company bought an iconic, American brand and tried to cash in on it by building junk and riding the name alone. This never works well.

[VERO1]

So, I cashed the rebate check Remington just sent me for a DPMS Panther I purchased FOUR years ago.  Opening the mail a day or two later I see a letter from the bank.  Started to toss it thinking it was the complementary term life insurance they offer annually.   I noticed it had first class postage so I figured I better double check.  Inside I find a copy of my rebate check and a notice telling me my account had been charged back for the $50 rebate.  Remingtons bank accounts have been "frozen and not recognized".    In another 15 years or so I will probably get a $0.36 settlement for my rebate.

[tntnixon]

Their new “lifetime warranty” is certainly null and void , also.


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[No_0ne]

On 3/27/2018 at 1:28 PM, MacGyver said:

Wall Street doubled down on this one. 

Cerberus has been trying to get out of this for a couple of years.  JP Morgan and Franklin Templeton Investments basically took this on for .25 on the dollar.  They had already negotiated a haircut with lenders.  

Basically the billion dollars of debt the hedge fund saddled them with in the various buyouts sank them when revenues sank over the last few years.

But note, that the billion dollars didn’t just vaporize - it went into someone’s pockets.

Some brands could go away here. Bushmaster and DPMS are at risk. AAC and Tapco are owned by the brand as well.

They own Marlin, too.

 

Same old song as before, see the Colt saga, pick whichever iteration you want ...

 

 

On 3/27/2018 at 2:36 PM, MacGyver said:

You're probably not too far off.  Cerberus had been trying since Sandy Hook to find someone to buy it and couldn't.

Private equity can be really dangerous. As an old mentor told me once, "debt magnifies the consequences of bad decisions."

A lot of money came into the gun business for a while thinking gun owners were an easy sell. And for the most part, for a while they were right. How many shops did we have open in middle Tennessee that weren't owned by gun people at all - rather they were owned by bankers. But then times changed - and your business fundamentals actually had to prove sound.

At least now we know that this experiment didn't work any better with the giant companies than it did the little gun shops.

I suspect that it worked quite well for the Equity firms, as they were able to sucker another group of gullible investors out of a billion bucks for a marginally-profitable company again ...

 

 

On 3/27/2018 at 3:12 PM, gregintenn said:

A big company bought an iconic, American brand and tried to cash in on it by building junk and riding the name alone. This never works well.

Again, in the private equity market it works quite well ...

[jgradyc]

I seriously thought about buying a.. what was it... RP9?... back in December for $196 after $100 rebate, but I decided those rebates might never arrive. I guess I was right.