Remington Arms declares bankruptcy despite surging gun demand.

The #1 community for Gun Owners in Indiana

Member Benefits:

  • Fewer Ads!
  • Discuss all aspects of firearm ownership
  • Discuss anti-gun legislation
  • Buy, sell, and trade in the classified section
  • Chat with Local gun shops, ranges, trainers & other businesses
  • Discover free outdoor shooting areas
  • View up to date on firearm-related events
  • Share photos & video with other members
  • ...and so much more!
  • DadSmith

    Grandmaster
    Rating - 100%
    1   0   0
    Oct 21, 2018
    22,200
    113
    Ripley County
    Remington, which supplies weapons for hunting, shooting sports, law enforcement and the military, sought chapter 11 protection and will try to sell its business at a time when civil unrest and worries about personal safety have driven firearm sales to record highs.

    The chapter 11 petition in the U.S. Bankruptcy Court in Decatur, Ala., marks Remington's second restructuring since 2018, when it filed for chapter 11 and transferred ownership to investors including Franklin Resources Inc. and JPMorgan Chase & Co


    https://www.foxbusiness.com/lifestyle/remington-arms-bankruptcy-surging-gun-demand

    JPMorgan Chase & Co aren't they supposed to be anti gun?
     

    RCB

    Sharpshooter
    Rating - 100%
    2   0   0
    Aug 17, 2009
    496
    43
    Near Bedford
    Aside from the illegal Sandyhook lawsuit, this illustrates mismanagement. It's what happens when you have investment firms running things. No interest in guns... only profits.

    Also a good idea not to locate your factories in liberal states. While much of New York state isn't liberal, the majority of voters are.
     
    Rating - 100%
    128   0   0
    Jan 28, 2009
    3,656
    113
    Wasn't there just a thread about ARs that guys said they were so good for the money? Just another reason why I won't touch a newer Remington.
     

    bgcatty

    Master
    Rating - 100%
    23   0   0
    Sep 9, 2011
    3,023
    113
    Carmel
    Investment firm and investment bank sucked Remington dry together with overpaid incompetent top management. Bravo Sierra on Remington management! Bunch of amateurs. Peace. Out!
     
    Rating - 100%
    28   0   0
    Oct 3, 2008
    4,187
    149
    On a hill in Perry C
    Aside from the illegal Sandyhook lawsuit, this illustrates mismanagement. It's what happens when you have investment firms running things. No interest in guns... only profits.

    Also a good idea not to locate your factories in liberal states. While much of New York state isn't liberal, the majority of voters are.

    Most of their production is actually in Arkansas and Alabama. Very limited quantity is made in New York.
     

    qwickwire

    Plinker
    Rating - 0%
    0   0   0
    Jul 25, 2020
    18
    1
    Indianapolis
    I think the consensus is that this is due to mismanagement. They make good products that are in demand. I have been wanting a Tac-14 and an MSR for a while.
     

    KokomoDave

    Enigma Suspect
    Site Supporter
    Rating - 100%
    75   0   0
    Oct 20, 2008
    4,500
    149
    Kokomo
    Well. $#i+! I wanted that bad arsed Tac 13 V3 semi-auto. Was going to try to buy one at the gun show this weekend.
     

    Leadeye

    Grandmaster
    Rating - 100%
    4   0   0
    Jan 19, 2009
    36,696
    113
    .
    Something wrong for sure, how could you not make money when guns are being sold right and left. Sounds like the cash went somewhere else.

    Always follow the money
     

    Mark-DuCo

    Master
    Rating - 0%
    0   0   0
    Aug 1, 2012
    2,265
    113
    Ferdinand
    Meh, after handling some of Remington's products the last few years I already decided I wasn't wasting my money on them again. Their quality has been going downhill for years.
     
    Rating - 100%
    28   0   0
    Oct 3, 2008
    4,187
    149
    On a hill in Perry C
    Not to mention they eliminated those divisions (DPMS, Bushmaster) that would be raking in the cash hand over fist right now, and basically everything else in their catalog that would be considered slightly controversial. Mismanagement, fuddism, lack of innovation, and a lot of bad luck all played a part.
     

    erasure

    komm süßer tod
    Rating - 0%
    0   0   0
    Jun 25, 2020
    740
    109
    merrrerrrmrerrerverre
    So, is this about right? I don't have the time to really dig and verify any of this, but looks like the story went like this:

    Cerberus Capital Management set up the Freedom Group, legally separate shell company under Cerberus' control.
    Borrowed a ton of money to buy out a bunch of gun companies, including Remington.

    Moved the factory, shifted the workforce to temporary workers, slashed costs wherever possible including finishes and QC, thanks to established reputation sales kept going strong for a little while. Long enough for Cerberus to collect "management fees" and for Remington to purchase the Freedom Group, legally severing its ties to Cerberus, which danced happily away.

    Mismanagement. **** that. Sounds like management went exactly to plan, but the plan wasn't making guns or running a gun company at all.
     

    Phase2

    Grandmaster
    Rating - 100%
    6   0   0
    Dec 9, 2011
    7,014
    27
    Looks like there may have been some shenanigans in the sale of the Remington to the Roundhill group. I was scratching my head about this at the time because all the info I could find at the time said that they are a well-heeled real estate group.

    It turns out that Remington CEO Ken D’Arcy (who was part of bringing it back to bankruptcy) was part of the purchase and that fact was hidden during the bid process. One of their first acts after the purchase was to fire 585 Ilioin, NY employees and refusing to pay severance and other benefits that were part of their contracts. This has been referred to the NLRB.

    BREAKING: Remington to Become the Subject of a Federal Investigation
     

    HoosierNation33

    Plinker
    Rating - 0%
    0   0   0
    Aug 6, 2020
    65
    8
    Springfield
    Looks like there may have been some shenanigans in the sale of the Remington to the Roundhill group. I was scratching my head about this at the time because all the info I could find at the time said that they are a well-heeled real estate group.

    It turns out that Remington CEO Ken D’Arcy (who was part of bringing it back to bankruptcy) was part of the purchase and that fact was hidden during the bid process. One of their first acts after the purchase was to fire 585 Ilioin, NY employees and refusing to pay severance and other benefits that were part of their contracts. This has been referred to the NLRB.

    BREAKING: Remington to Become the Subject of a Federal Investigation
    You know, a friend of mine and I were talking reecently about how little we really knew about the Roundhill group and now this? Sheesh.
     

    brchixwing

    Sharpshooter
    Rating - 100%
    75   0   0
    Nov 13, 2016
    326
    12
    Indianapolis
    Late reply lol but thought I'd fill in some blanks of the key drivers for Bankruptcy -- Cerberus raised a ton of money from expensive debt when they bought Remington through a holding company... then used Remington operating cash flows to buy back a ton of that stock from the holding company & then they borrowed a ton of money under the operating company at the last gun peak to absolve Cerberus' holding company... then they also opened a huge factory at an old Chrysler plant.

    The original plan was setup to get Cerberus all the upside from taking Remington and a few other brands public as "Freedom Group" but that never happened because Sandy Hook.

    So, is this about right? I don't have the time to really dig and verify any of this, but looks like the story went like this:

    Cerberus Capital Management set up the Freedom Group, legally separate shell company under Cerberus' control.
    Borrowed a ton of money to buy out a bunch of gun companies, including Remington.

    Moved the factory, shifted the workforce to temporary workers, slashed costs wherever possible including finishes and QC, thanks to established reputation sales kept going strong for a little while. Long enough for Cerberus to collect "management fees" and for Remington to purchase the Freedom Group, legally severing its ties to Cerberus, which danced happily away.

    Mismanagement. **** that. Sounds like management went exactly to plan, but the plan wasn't making guns or running a gun company at all.
     

    brchixwing

    Sharpshooter
    Rating - 100%
    75   0   0
    Nov 13, 2016
    326
    12
    Indianapolis
    Sort of reminds me of what happened with Harley when a few employees bought it from AMF (then almost went bankrupt), but then flipped a 180 --
    https://www.thetruthaboutguns.com/roundhill-group-wants-to-make-remington-great-again/

    "Edwards told us that Roundhill is a well-funded group of gun of shooters and outdoor enthusiasts who want to see the iconic Remington name restored to one of trust again. Makers of quality products that gun buyers can be confident in after years of ownership and mismanagement by pencil-necked finance types with no grounding in the gun business."




    You know, a friend of mine and I were talking reecently about how little we really knew about the Roundhill group and now this? Sheesh.
     

    drillsgt

    Grandmaster
    Rating - 100%
    108   0   0
    Nov 29, 2009
    9,627
    149
    Sioux Falls, SD
    Sort of reminds me of what happened with Harley when a few employees bought it from AMF (then almost went bankrupt), but then flipped a 180 --
    https://www.thetruthaboutguns.com/roundhill-group-wants-to-make-remington-great-again/

    "Edwards told us that Roundhill is a well-funded group of gun of shooters and outdoor enthusiasts who want to see the iconic Remington name restored to one of trust again. Makers of quality products that gun buyers can be confident in after years of ownership and mismanagement by pencil-necked finance types with no grounding in the gun business."

    That didn't work out so well for the employees:

    We intend to maintain, care for and nurture the brand and all of the dedicated employees who have crafted these products over the years for outdoorsmen and women both here in the USA and abroad.
     
    Top Bottom