Remington Outdoors is reportedly preparing to file Chapter 11 bankruptcy in order to get rid of $700 million in debt.
They plan to file in a federal bankruptcy court in Wilmington, Delaware.
Fortune reports the bankruptcy results from two things: A reduced demand for new firearms and the difficult climate created by the fact that the Sandy Hook Elementary attacker used a Remington Bushmaster rifle to carry out his criminal attack. That rifle, however, was legally purchased and registered before being stolen and used by the attacker.
The bankruptcy filing will remove Remington from under the auspices of Cerberus Capital, handing it to creditors, each of whom will get a share in the company. CBS News reports the new ownership will be structured so that “holders of Remington’s $550 million term loan will get an 82.5 percent equity stake in the gunmaker, and third-lien note holders will get 17.5 percent of Remington and four-year warrants for a 15 percent stake.” Another $100 million will be in place to keep the company running during the bankruptcy process.
Remington executive chairman Jim Geisler said, “Difficult industry conditions make today’s agreement prudent.”
AWR Hawkins is an award-winning Second Amendment columnist for Breitbart News, the host of the Breitbart podcast Bullets, and the writer/curator of Down Range with AWR Hawkins, a weekly newsletter focused on all things Second Amendment, also for Breitbart News. He is the political analyst for Armed American Radio. Follow him on Twitter: @AWRHawkins. Reach him directly at email@example.com. Sign up to get Down Range at breitbart.com/downrange.