In the business of making firearms for over 200 years, legendary Remington Arms Company filed for Chapter 11 bankruptcy protection this week. However, not all is doom and gloom albeit close. According to court documents, a federal judge approved $75 million in loans to keep the company afloat making guns.
The lack of demand for firearms has not only dragged down the industry as a whole, it’s also starting to hit manufacturers hard, including Remington. The company is looking to cut as much as $620M of debt; it’s asked for approval of $338M in loans by April 29, but to date, only a portion of that has been approved. According to Sarah Foss, a legal analyst at Debtwire, the $75M loan approved this week is the “interim amount to get [Remington] through the interim period until [it gets] to that final hearing on the additional amount that they’re going to need.”
Remington is not only one of the most iconic gun brands in the world, it is also one of the oldest gunmakers in the United States. Founded in New York in 1816, Remington is now based in North Carolina and manufactures a variety of rifles, pistols, and shotguns throughout its seven plants—including its 1840’s brick factory in Ilion NY.
Other iconic brands like Sturm Ruger and Smith & Wesson have also been hit hard by slumping sales under the current Trump administration. Many gun companies experienced record sales during the Obama years, as fears of more restrictive gun control measures loomed over many gun consumers. Along with sales and profits, these fears have all but faded away since the 2016 election of the National Rifle Association endorsed candidate Trump.
Cerberus Capital Management currently owns Remington and plans to shed ownership once the bankruptcy process is over.