American gun manufacturing giant Remington may be preparing to file for bankruptcy.
Remington Outdoor Company Inc, one of the largest U.S. makers of firearms which was established in 1816, has reached out to banks and credit investment funds in search of financing that will allow it to file for bankruptcy, according to reports from Rueters.
For some time, reports and news leaks have been showcasing the financial crisis of Remington. The Madison, North Carolina-based company has faced declining revenues with sales plunging 27 percent in the first nine months of 2017.
Rueters Business News had also reported last month that company has been working with investment bank Lazard Ltd on options to restructure its $950 million debt pile.
The move comes as Remington reached a forbearance agreement with its creditors last week following a missed coupon payment on its debt, according to sources.
Remington is seeking debtor-in-possession financing that will allow it to fund its operations once it files for bankruptcy, the sources said. The size of the financing and timing of Remington’s bankruptcy plans could not be verified.
Here’s Remington’s official release on the matter.
The reputation risk of dealing with such a substantial move is causing some issues for Remington, as possible financing sources are hesitant in helping the gun manufacturer.
It has been an odd couple of years in the firearm market, and seeing one of the most iconic brands in the industry having issues is puzzling for many.
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