Remington, recipient of $1 million in Morgan money, files for bankruptcy
- Author: Ronnie Bowen Mar 27, 2018,
Mar 27, 2018, 3:12
Late Sunday, according to records from the bankruptcy court of the district of Delaware, Remington Outdoor Co. agreed to a prepackaged deal that would give holders of the company's $550 million term loan an 82.5 percent stake, according to a release.
According to various reports and a bankruptcy filing in DE, the brand reached a deal with lenders to reduce its debt by about $700 million and add about $145 million in new capital in February.
Filing a Chapter 11 bankruptcy will reportedly allow Remington to remain in business while restructuring its $700 million debt.
Remington is also still facing a class action lawsuit over the Sandy Hook shooting in Newtown, Connecticut.
Remington is owned by private equity giant Cerberus, which began buying up gun companies a decade ago.
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The company was founded in Ilion, N.Y.m by Eliphalet Remington in 1816 and maintains its factory there. Some gun-rights advocates have binged on guns on the misguided belief that a Democratic administration would harshly restrict gun sales. As a result, the families of the victims sued the gun maker.
Since the US Presidential election, the gun sales have declined majorly and overall h slowed. I am confident this regrouping ensures that Remington will continue as both a strong company and an indelible part of our national heritage.
A recent study by Harvard University and Northeastern University found that the number of privately owned guns in America grew by more than 70 million - to approximately 265 million - between 1994 and 2015.
The bankruptcy filing comes as the industry faces pressure over school shootings; thousands of students, educators and others participated in the March for Our Lives in Washington, D.C., and other cities over the weekend. Soon after, "Cerberus dropped plans for an initial public offering of what was then known as the Freedom Group".
The firm is also looking into creating new investment funds that exclude gun makers and retailers.