Remington Arms Furloughed 600 Workers
BY Herschel Smith
4 years, 2 months ago
From Sniper’s Hide.
Plant-wide furlough at Remington Arms; more than 600 affected
More than 600 Remington Arms workers were furloughed Thursday. They learned through an email from Remington Outdoor Company CEO, Ken D’Arcy, when they got to work Thursday. They left the plant shortly after learning of the plant-wide furlough, at around 12:30.
As to how this sort of thing can happen, one commenter notes:
Lawsuits
Unions
RP9 Pistols
R51 Pistols
Ho Hum AR’s
Ruger, Howa, Tikka, Bergara, and the rise of “production class” customs eating your lunch in the bolt action segment
Hornady
Bad decisions. True enough, being in a collective bargaining state rather than a right to work state harmed them, as it will any company. They should have relocated as should any firearms manufacturer located in the Northeast.
But they have made some extremely bad business and financial decisions like waiting far too long to acknowledge the problems associated with the 700, failures they even duplicated in non-trivial numbers by their own testing.
Other firearms manufacturers have been smarter and faster, and the firearms-buying public has too many very good options to settle for mediocre products these days.
There is also the issue of the fact that Cerberus / Freedom Group was essentially a company of “financial engineers” (I loath that term for reasons that would send me off on a rant) who worked hard to squeeze every last drop of money out of the company and leave it bankrupt.
This serves as an object lesson to firearms manufacturers everywhere. [1] Don’t sell out to financial engineers who want to rape the company, [2] admit and fix flaws in guns, and do it fast, [3] get out of union states, [4] give the public what they want by being innovative, cost effective and smart, but don’t make trash, and finally, [5] hire good engineers.
We’re all watching the remaining firearms manufacturers located in the Northeast. If you are one of them, why are you still there?
Prior: Gun Valley Moves South
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On September 27, 2020 at 9:04 pm, Michael Gilson said:
The Gun Collective YouTube show said the owners of Palmetto State want to buy Remington’s ammunition manufacturing business.
https://www.youtube.com/watch?v=-zcmWsYWkFM
Michael Gilson
On September 27, 2020 at 9:56 pm, Fred said:
SCCY decided not to open a new facility near Knoxville. Guns are selling like gangbusters. How quickly they forgot what Florida is doing to gun owners and gun businesses. The writing is on the wall in FL, they knew it, heeded the warning, but then balked. They will pay.
As to Remington, if you can’t sell guns today, you can’t sell guns. I don’t know what else to say about that.
On September 27, 2020 at 10:30 pm, Frank Clarke said:
I lust after a Henry lever action but refuse to send any money to NJ or to recompense someone who did.
On September 28, 2020 at 6:37 am, John Taylor said:
This might make you feel better:
Vista Outdoor (NYSE:VSTO) says it has been named a successful bidder in the auction process conducted in connection with Remington Outdoor Company’s Chapter 11 bankruptcy cases pending in the United States Bankruptcy Court for the Northern District of Alabama.
As a result, Vista Outdoor will acquire certain assets related to ROC’s ammunition and accessories businesses, including ROC’s ammunition manufacturing facility in Lonoke, Arkansas and related intellectual property, including the Remington brand and trademarks.
The company will pay $81.4M for the acquired assets.
“Remington ammunition and accessories have a storied role in America’s sporting heritage, with a legacy dating back to 1816,” notes Vista CEO Chris Metz.
“We see a clear path to value creation. With our deep expertise and resources, we can transform Remington’s ammunition and accessories businesses to create a more efficient, profitable and sustainable operation.”
Vista Outdoor expects the transaction to be accretive to earnings in FY22.
On September 28, 2020 at 1:12 pm, RDB said:
Great point. Private equity can be a real killer for a business. Buy a business, use it as collateral for debt to buy the business, squeeze out the efficiencies and savings, sell it and cash out and let the buyer fail under the debt load it is under. Been there, seen it.
On October 1, 2020 at 8:41 am, Sanders said:
Got an e-mail from Ruger yesterday that says they are acquiring all of Marlin’s assets from Remington.
You can read the press release here: https://ruger.com/corporate/marlin.html
On October 1, 2020 at 12:58 pm, BRVTVS said:
Hopefully, Ruger will get Marlin quality back on track. Plus, with Ruger’s recent emphasis on takedown models, we could see a few takedown models.