Remington, one of the longest-standing continuous manufacturers in America with 202 years of history, has filed for bankruptcy as part of a corporate restructuring.
Having initially outlined its plans for bankruptcy on 12 February, on Tuesday 27 March the gunmaker won court approval for an interim borrowing package to sustain business during cost-cutting measures.
The filing allows Remington to stay in business and keep making guns while restructuring its debts. The company has confirmed that operations will not be disrupted as plans to reduce its debt by $620 million begin through the Chapter 11 process. Under this process the debtor proposes a reorganisation plan to continue work and pay creditors over a period of time.
The bankruptcy is ‘pre-packaged’, meaning the company has already reached agreement with its major creditors on a restructuring plan. Most creditors will be paid in full UK import of Remington guns, run by Raytrade UK, is not expected to be affected by the move.
The business is owned by Cerberus Capital Management, which plans to shed ownership once the bankruptcy is complete. Hearings were scheduled to begin on Tuesday 3 April in the US Bankruptcy Court in Wilmington, Delaware – Remington is then seeking to confirm its plan by Wednesday 3 May.
The move has been cited as a symptom of a ‘Trump Slump’ in America, whereby a lack of political appetite to tighten gun laws means short-term demand for guns decreases. It follows the bankruptcy procedure Colt went through in 2015.