Cerberus’s Remington Gunmaker Seeks Bankruptcy Protection

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Remington Outdoor Co., the 200-year-old maker of rifles, handguns and bullets controlled by Cerberus Capital Management, filed for bankruptcy, after the election of a “true friend” to the White House ironically wound up stifling sales.

The chapter 11 filing in Delaware bankruptcy court lists estimated liabilities of $100 million to $500 million. Remington, which makes weapons for military, law enforcement, and hunting customers, disclosed plans for the bankruptcy on Feb. 12. A deal had already been negotiated with lenders that would cut debt by about $700 million and inject $145 million of new capital into the Madison, North Carolina-based company.

The filing came after a weekend of marches across the U.S. seeking tighter laws to fight gun violence. It allows Remington to keep operating, and the deal with lenders is subject to court approval.

Demonstrators gather in Washington D.C. during the March For Our Lives on March 24.

Photographer: Toya Sarno Jordan/Bloomberg

Remington’s fortunes took a hit after the election of Donald Trump, a self-proclaimed “true friend” of the gun industry. Gun enthusiasts traditionally stock up on firearms at times when political winds suggest tighter gun control lies ahead. But Hillary Clinton’s defeat erased those fears, leaving retailers stuffed with unsold inventory.

Several Setbacks

Other setbacks have included an aborted public offering in 2011 and an investor revolt after one of its rifles was used in the Sandy Hook Elementary School mass shooting.

The troubles have been a blow to Cerberus, owned by private-equity billionaire Stephen Feinberg, who has been a prominent Trump supporter. New York-based Cerberus acquired Remington in 2007 and saddled it with almost $1 billion in debt. 

After the Sandy Hook shooting, Cerberus announced it would sell the company, as its own agitated investors demanded an exit, but it failed to find a buyer.



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