Remington, the oldest gunmaker in America, files for chapter 11 protection in U.S. Bankruptcy Court.
Founded in 1816, Remington has been a staple in the firearms industry for a very long time now.
However, with a heavy debt load and falling sales, bankruptcy was the only business option left for Remington.
Remington filed for Chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Delaware. In exchange for wiping much of its debt from its balance sheet, Remington plans to hand over control of the company to its creditors. This includes Franklin Resources Inc. and JPMorgan Chase's asset management division.
Remington has stated that the agreement with lenders will reduce its debt by about $700 million and add about $145 million in new capital.
Remington will look to continue business, though, and released this comment on Facebook:
"Providing our customers with craftsmanship worthy of our reputation remains our top priority. That is why we've made significant investments in quality control measures, equipment and training at each of our facilities. All new firearms come with a lifetime warranty, a vote of confidence in their lasting power. We want to earn that spot in your safe, and that is exactly what we plan to do going forward. We want our customers to feel proud when they show off their Remington at the range or in the field."
The firearm industry as a whole is facing low demand and high stock after Donald Trump's unexpected election to the presidency in 2016. Firearms manufacturers and other shooting brands boosted output before the election, expecting a Hillary Clinton victory to boost sales ahead of tighter gun laws, but instead they're now attached to tons of inventory.