Remington Firearms $950M In Debt
BY Herschel Smith
6 years, 8 months ago
From several readers.
ILION, N.Y. (WSYR-TV) – One of the largest U.S. makers of firearms made in Upstate New York has filed for bankruptcy, according to a report from Reuters.
Remington Outdoor Company Inc., of Ilion, has reached out to banks and other agencies to seek financing to file for bankruptcy, according to Reuters.
The company is working with an investment bank to restructure its $950 million in debt.
Remington has not officially filed for bankruptcy yet.
There have been no immediate plans to shut down, Reuters says.
Congresswoman Claudia Tenney, who represents Herkimer County, issued the following statement:
“Remington Arms is an iconic business in our region that has employed generations of families for over two hundred years. Remington is one of our nation’s longest continuously operating manufacturing facilities. Unfortunately, economic downturns in the firearms industry and outstanding debt have forced Remington’s parent company to seek new credit options and financing through bankruptcy protection. In addition to volatility, Governor Cuomo’s anti-Second Amendment policies have negatively impacted Remington’s Ilion production facility. I have been a strong supporter of Remington Arms and its hardworking employees. My office will continue to offer support to Remington and the families impacted during this difficult time.”
This is tough. It’s difficult to see how Remington pulls out of this. $950M is an awful lot of money for a firearms manufacturer.
I don’t know what the future holds for Remington, but it would have been better to have dealt with the issues that were the possible root causes of this long ago: [1] reliance on government contracts, [2] ensconcing in an anti-gun state, [3] reliance on union labor, and [4] lethargy in dealing with the Walker fire control system problems.
Move South, dear people. Move South. But leave the progressive politics behind.
On February 12, 2018 at 2:10 am, Georgiaboy61 said:
Bad news to see such a storied company as Remington in financial straits, but another once-troubled and formerly great firearms company has returned to greatness and is again producing world-class products.
After a period of uncertainty, Winchester Repeating Arms, is back in business and making excellent firearms. Winchester and her sister company Browning, are now subsidiaries of respected Belgian arms maker Fabrique National-Herstal. Both Winchester and Browning have ties to Ogden, Utah, the birthplace of John M. Browning, and the original site of so much of his work for both firms.
The Winchester Model 70 bolt-action is known as the “rifleman’s rifle,” and for decades served as the standard by which all other mass-produced bolt-action rifles were judged. An ill-advised change in manufacturing standards led to a period of diminished quality beginning in the 1964, during which Winchester lost its position as the preferred supplier of precision rifles for the U.S. Army and Marine Corps, ironically to Remington Arms, whose Model 700 replaced the Model 70 in both services.
After changing hands a number of times, Winchester was purchased by FN – a match which was to prove ideal, given the Belgian firm’s excellence in the design and manufacture of firearms and past work with John Browning.
Today, newly-manufactured M70 rifles are superb in their fit, finish and attention to detail. Constructed of high-quality components and produced using state-of-the-art methodologies, these bolt-actions deliver accuracy, durability and performance rivaling arms which cost 3-5x times as much, including some of the finest custom rifles on the market. The new Model 70s shoot every bit as well as their fabled pre-1964 forbearers – and sometimes even better. Try one – you won’t be disappointed.
On February 12, 2018 at 10:14 am, Fred said:
You know your company sucks if you can’t make money during the greatest firearms sales boom in history. This clearly indicates deep and systemic structural and organization issues that go way beyond the type of product produced or macro business cycles. I feel for those few who actually put their heart into the company’s recent past efforts.
The owner(s) should file for bankruptcy, fire EVERYBODY, preserve the name, branding and trademarks and open afresh in the south or out west with new leadership and new personnel all the way down to the entry machinist apprentices.
On February 12, 2018 at 10:19 am, Herschel Smith said:
@Georgiaboy,
Let me tell you what I know about the Model 70. Everybody was happy to see FN take it over after years of being made in Japan (what, two decades?). The problem was that when I went to buy one none could be found. Note: this is Hyatt Gun Shop, who can find me literally anything. Anything. Nothing is too unique for them. Nothing is too uncommon. And they couldn’t get hold of a Model 70. This was a few years ago.
At the time, they found out that while it had been advertised that the Model 70 was FN owned and made right down in Columbia, S.C., in fact some of the parts are being fabricated in Portugal and only assembled in S.C.
I opted to buy a Tikka instead and haven’t been disappointed.
On February 12, 2018 at 1:39 pm, moe mensale said:
@Fred,
It’s tough to remain solvent even in the best of times if most of your cash goes to pay dividends to the owners. In this case, Cerberus Capital who owns ~95% of Remington.
Private equity firms like Cerberus are notorious for buying companies, loading them with debt and then pulling the cash out to pay themselves dividends. That’s how Cerberus makes its money. And Remington remains saddled with the debt.
Remington has had its problems like the Walker trigger and the Newtown shootings but I doubt it carried anywhere near a billion dollars in debt before Cerberus acquired it.
On February 12, 2018 at 2:06 pm, Fred said:
Moe, Ownership can certainly be the problem with any company. I thought about that after I posted…maybe ownership is the problem…you’re probably right.
On February 12, 2018 at 2:15 pm, Georgiaboy61 said:
Re: “At the time, they found out that while it had been advertised that the Model 70 was FN owned and made right down in Columbia, S.C., in fact some of the parts are being fabricated in Portugal and only assembled in S.C. I opted to buy a Tikka instead and haven’t been disappointed.”
Sako was purchased by the respected Italian firm Beretta, so they are no longer an independent gun-maker, either. I have not yet owned a Sako or Tikka product, but have seen them and handled them in stores, and the quality is obviously very high.
As for the global origin of the parts used in making Winchester M70’s, I suppose that is the reality of business these days…. sort of like trying to find an automobile 100% American made.
One day, I do hope you’ll have an opportunity to own one of the new Model 70s, as they are superb firearms – even their budget lines.
I am also very high on Savage, another under-appreciated company which delivers excellent value for the buck.