Gun Maker Remington Filing For Chapter 11
One of the best-loved firearms producers in America has just announced that they have reached a deal to file for Chapter 11 bankruptcy in the wake of declining sales due to a Trump policy.
The Trump administration supports the second amendment, and this seems to have triggered a slow market. When a Democrat is in charge, there is a real fear that gun rights will be restricted causing people to stock up on guns and ammunition. But, with Trump, customers no longer appear to have the same fear. No one who considers firearms a fundamental right believes that Trump would pull the rug out from under them anytime soon. This general calmness on the part of the citizenry has resulted in other gun manufacturers to lose money, including Sturm Ruger and American Outdoors Brands. The decline in sales began when Trump was elected to the Presidency.
So there’s a good bit of trivia next time you want to melt the face off of your liberal friends: Gun sales go down when a Republican is in charge! But they didn’t listen when you said that their taxes would go down, or that border security would tighten, so they’ll probably find a way to weasel out of this fact too.
Seven more years! In his book Crippled America, Trump confirmed that he is a gun owner. Public records indicate that he has had a concealed carry permit since 2010.
So what happened at Remington, who currently owe their creditors $950 million?
The gunmaker will receive $145 million to keep the lights on during the bankruptcy process. The process is taking place in Delaware where the company is registered, and Remington will hope to find a way to write off $700 million worth of debt.
But, this is bad news for Cerberus Capital Management who has controlled Remington since 2007. The private equity firm picked up Remington for $370 million along with $252 million in assumed debt. As a result, Cerberus will lose their control of the business. But there’s another little bit of trivia for that lefty you know:
Cerberus, now know as the Freedom Group, has a special connection to the Trump administration. Its CEO is Steve Feinberg, who is the Chair of President Trump’s Intelligence Advisory Board. So, one of Trump’s shadowy Intelligence figures will be losing one of his equity firm’s manufacturers to bankruptcy due to the pro-second amendment Trump policy.
Remington’s CEO gave a short statement in the wake of the credit deal:
“We have an outstanding collection of brands and products, the unqualified support of a vibrant community across the industry, and a deep and powerful culture. We will emerge from this process with a deleveraged balance sheet and ample liquidity, positioning Remington to compete more aggressively and to seize future growth opportunities.”
So will this kick start a new panic buy of ammunition and rifles? It’s doubtless that even if the company had to pack it in that the intellectual property and designs would go to waste.
Luckily for employees, the emergency cash will keep their wages and benefits from dropping.
One of the internal struggles for the company came in the wake of the terrible shooting at Sandy Hook Elementary, where the perpetrator used a Remington Bushmaster rifle to murder 20 students and six adults. This caused some investors to abandon the company. Cerberus itself tried to sell the company off due to pressure from remaining investors. Some of the families of victims of Sandy Hook are still involved in an ongoing case against the manufacturer.
One commie professor at UCLA has basked in the recent decline of rural whites as part of the decline in support of the NRA, saying that as the number of uneducated whites living in rural areas keeps dropping, more gun control legislation can be enacted.
Remington Arms Company was founded in 1816 by Eliphalet Remington in New York. The plant, built in 1828, is still in Ilion to this day, and another one was opened in Hunstville, Alabama in 2014.
The Remington Models 700 and 870 are some of the best-selling firearms of all time, but Eliphalet started with a flintlock rifle of his own design that he built at the age of 23 using what he learned about iron forging from his father’s barrel-making business in Ilion Gorge. Upon earning second place in a shooting match, he had reportedly been given so many orders for one of his guns that he had become a gunsmithing businessman in all of a day.
Sources: Daily Mail, Wikipedia, Official Remington Website, ABC News, Reuters