Donald Trump ran as a “pro-gun” presidential candidate, but his ascent to the nation’s chief executive post did little to help the oldest firearms manufacturer in the United States. The 202-year-old Remington Outdoor Co. announced filing for bankruptcy protection earlier in the year. Remington cites a dramatic decline in the purchase of their products as a prominent factor in its demise. Ownership of the firm recently transferred to the bank JPMorgan Chase, but the future of Remington remains in doubt.
How it Got Here
Remington faced difficulties related to a class-action lawsuit settled in 2014. In the agreement, the company had to replace, at no charge to the owners, defective triggers on millions of weapons. The defect caused some two dozen deaths and hundreds of serious injuries. Damaging the company’s standing a second time was the fact that one of the weapons used in the 2012 massacre at Sandy Hook Elementary School, was a Remington product.
Experts theorize that Trump’s defeat of Hillary Clinton, an ardent supporter of gun safety measures, brought a sense of relief to concerned gun owners, which led to a drop in firearm sales. This was in startling contrast to the previous decade, after Barack Obama was elected president. In the six years from 2008 to 2014, the industry grew an astounding 97%, with revenues increasing from under $20 million to nearly $38 million. In addition to firearms and ammunition, the sale of sights and other accessories increased during this period.
Remington Background
The company came into existence in 1816 with the creation by Eliphalet Remington II of his first flintlock rifle. Remington remained economically healthy in recent years, employing some 3,500 workers less than five years ago. In 2007, Cerberus Capital Management acquired the company, but the purchase left Remington heavily in debt. Cerberus sold it shortly after the Sandy Hook tragedy, leading to the collapse of Remington.
Although officially out of bankruptcy, Remington could face future trouble if sold by JPMorgan Chase and abandoned by its creditors. However, its salvation could come if the Democrats, known for their support of gun safety laws, take control of the U.S. Congress later this year.
Bankruptcy filings for businesses have been steadily increasing over the years. Whether you’re a small business or a large company, filing for bankruptcy can be scary and challenging. Seek the help of an experienced bankruptcy attorney to help the filing process go smoother. The law office of E. Orum Young has filed over 20,000 bankruptcies, the most in Northeast Louisiana. Contact us at (318) 450-3192 for a free case evaluation.
