Item URL – Read More
Item Image –
Item Description – Remington is one of the first names Americans think of when they hear the word “firearms.” The company holds rank as the oldest of the nation’s gunmakers and top producer of shotguns and rifles. It’s also claimed to be the oldest factory in the U.S. that is still in operation making its original product. On Tuesday, Remington has reached another milestone in its 204-year history. The company is preparing for Chapter 11 bankruptcy.According to the Wall Street Journal, about a potential sale with the Navajo Nation on Friday.Remington Is No Stranger to Bankruptcy and ControversyRemington was founded in 1816 by Eliphalet Remington, who believed that he could design a better flintlock rifle than those that were already on the market. His family owned the business until 1888 when it changed hands to Marcellus Hartley and Partners who also owned the Metallic Cartridge Company.By the early 20th century, the two businesses combined to create Remington UMC. They would go on to produce arms for Allied powers during World War I. They also collaborated with the U.S. Army in 1940 to expand ammunition capacity. Remington oversaw government-owned plants and manufactured the famous M1903A3 Springfield bolt-action rifle during World War II.Remington Arm’s illustrious career in gun making wasn’t without its challenges. The company was purchased by Cerberus Capital Management in 2007, during a time when they were millions of dollars in debt. Just 10 years later, and after many new product developments and business changes, Remington filed for bankruptcy.An August 2017 CBS 60 Minutes exposé on deaths caused by the X-Mark Pro trigger defect led to a decline in sales and a damaged reputation. They worked through restructuring and exited bankruptcy after just two months in May of 2018.The speedy recovery occurred because of a pre-approved structuring plan that was supported by 97% of its creditors. Common stock shares were canceled and new shares were issued to convert the company’s $775 million in debt into equity.Remington later faced a wrongful death lawsuit issued by the families of nine Sandy Hook School shooting victim’s families and the family of one teacher who survived the tragedy. The Connecticut State Superior Court dismissed the case, citing immunity given to firearms manufacturers by the Protection of Lawful Commerce in Arms Act (PLCAA) of 2005.The lawsuit may have failed, but it triggered a further decline in firearms sales for Remington.Today’s development is the latest in the company’s long history of ups and downs.Navajo Nation is the Highest Bidder for Remington AssetsThe Navajo Nation is the current highest bidder in line to purchase the company’s assets in the Chapter 11 proceedings. The report stated that the filing could become official in a matter of days. Representatives for the Navajo Nation and Remington Arms have not responded to requests for comment from publications like Reuters at the time of this writing.We will continue to monitor the situation and report new developments from our . Please check back to learn more about Remington filing Chapter 11 or other bankruptcy topics in the news.