Remington Arms Company, the rifle company that supplied the guns used in WWI, WWII, Vietnam, Iraq and Sandy Hook, officially filed for bankruptcy following gun protests in 800 cities and struggling sales.
Remington has dodged bullets before
Over 202 years, Remington has leaned on a WWI government bailout, a Depression-era DuPont takeover, and a recent private equity takeover to stay in business.
But, after a Remington-made AR-15 was used to kill 20 students and 6 adults in Sandy Hook in 2012, Remington’s new handler, Cerberus Capital Management, starting seeking buyers to avoid bad press and appease investors.
Buyers proved impossible to find, and the private equity firm was left holding the smoking gun-maker.
And the ‘Trump slump’ hasn’t helped
Ironically, Republican administrations — which consumers typically associate with laxer gun laws — often correlate with a dip in gun sales (whereas buyers will scramble to pick up firearms during a Democratic presidency when they anticipate a crackdown on gun ownership).
Remington’s sales slumped 27% after President Trump’s victory, forcing the company to announce a “financial restructuring plan” to write off $700m of its $950m debt — and give them another chance to find a savior.
Then, after a gunman killed 17 students and school officials in Parkland, FL, gun retailers from Walmart to Dick’s clamped down on gun sales and anti-gun sentiment rose yet again — a deadly combo that may be the final bullet through Remington’s armor.
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