Remington files for bankruptcy

[jimmyz]

Lets buy Remington!

What I was attempting to say is a private equity firm should buy Remington after bankruptcy. I want to see Remington around for a long time to come.

[Dr. Who]

What I was attempting to say is a private equity firm should buy Remington after bankruptcy. I want to see Remington around for a long time to come.

They actually tried to find a buyer before they filed for chapter 11. Perhaps they will again.

[Peter1469]

Chapter 11 is reorganization. They are trying to get debt discharged. They are not going out of business. Yet.

[Chris]

Chapter 11 is reorganization. They are trying to get debt discharged. They are not going out of business. Yet.

Right. And the fact they found lenders to fund a chapter 11 shows some still believe they can succeed.

[MisterVeritis]

Remington, the manufacturer of the AR-15, was making significant revenues under the Obama administration, however, its sales have slumped under Trump.

I mentioned in one post or another, that many people became rather irrational during the last Administration out of unfounded fears of gun bans and went out and bought AR-15s in a form of retaliation against the discussion of gun control. Unfortunately, those same people are responsible for upsetting Remington's business model, which had to try to manufacture for predicted sales which didn't happen.

A 200 year-old American manufacturer has been damaged, not by the left, but by the emotionally charged buying patterns of the right that evaporated once the government changed. Of course, the lawsuits don't help, but I'm sure Remington is insured and the company cannot be held liable for weapons that the government deemed legal and the actions of people who used them for murder. Unfortunately, the legal fees are immense and such companies usually have a considerable self-insured component to their insurance (i.e. a very large deductible).

It is almost as if you have no business sense. Businesses do not go out of business by selling MORE products at a profit. Lawsuit abuse and mismanagement are the likely reasons for their problems.

[Common]

Their AR-15s were selling well, albeit for silly reasons. Actually, all gun manufacturers are suffering from slumping sales, some as much as 90% down. Before Obama, gun sales were dwindling rapidly. Only a rather small percentage of the population really own multiple guns:

https://www.theguardian.com/us-news/...mp-slump-sales

I only mention Remington because they are connected to the history of America and borrowed heavily to feed a market that abruptly disappeared.

Doc do you realize how many AR-15 manufacturers there are, remington was no where near the top. They have been giving their guns away at great discounts for months. RKguns.com constantly had remington 380s, 45 pistols and shotguns their entire line at great discounts. Remingtons products are not appealing to gun buyers and enthusiasts.

Im betting there were bad business decisions that played a part.

Other gun manufacturers are flourishing the gun industry always has lulls like many other industries. Remember guns are a product that last lifetimes, they dont have to be replaced at regular intervals, new offerings and innovation is what sparks buying, remington under performed in those categories.

[Dr. Who]

It is almost as if you have no business sense. Businesses do not go out of business by selling MORE products at a profit. Lawsuit abuse and mismanagement are the likely reasons for their problems.

Actually, they took on a lot of debt in order to increase production in anticipation of a Dem win - it's noted in their Court filings. I guess you could characterize that as mismanagement. No, I don't think that you go into Chapter 11 because you sell too much product. You go into Chapter 11 because you can't service your debt because the bottom fell out of the gun market when Trump was elected. No more reactionary gun buying which had substantially increased sales, that over the years had been declining until Obama was elected.

[Dr. Who]

Doc do you realize how many AR-15 manufacturers there are, remington was no where near the top. They have been giving their guns away at great discounts for months. RKguns.com constantly had remington 380s, 45 pistols and shotguns their entire line at great discounts. Remingtons products are not appealing to gun buyers and enthusiasts.

Im betting there were bad business decisions that played a part.

Other gun manufacturers are flourishing the gun industry always has lulls like many other industries. Remember guns are a product that last lifetimes, they dont have to be replaced at regular intervals, new offerings and innovation is what sparks buying, remington under performed in those categories.

Remington Outdoor Company (formerly Freedom Group) actually owns Bushmaster Firearms which is among the top 5 sellers of AR platform rifles.

[Chris]

They saw a potential is a rising market for guns, risked ramping up production, and the market reversed. It sounds too like ramping up production led to some poor quality.

[MisterVeritis]

Actually, they took on a lot of debt in order to increase production in anticipation of a Dem win - it's noted in their Court filings. I guess you could characterize that as mismanagement. No, I don't think that you go into Chapter 11 because you sell too much product. You go into Chapter 11 because you can't service your debt because the bottom fell out of the gun market when Trump was elected. No more reactionary gun buying which had substantially increased sales, that over the years had been declining until Obama was elected.

Yes. Mismanagement.