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Remington seeking to file bankruptcy. This is “according to people familiar with the matter”

11 Responses to “Rumors?”

  1. Tim Says:

    ‘Gun control’ marxist-style.

    Infiltrate the company with incompetent, douchebag true-believers. Ruin the company & declare bankruptcy. Voila’! No moar gunz!

  2. JTC Says:

    More to come, not unrelated to your 2016 post.

    Bubbles bust.

  3. HL Says:

    Almost a billion in debt? Holy shit.

    In addition to multiple recalls they have produced flop after flop.

    Now, I realize that same performance record didn’t sink GM, but I doubt that Big Green is going to get a handsome taxpayer bailout.

  4. Patrick Says:

    Victim of a typical hedge fund raid:

    – Take controlling stake of corp
    – hedge fund makes significant coin creating many (many) derivative offerings and arranging ever more lucrative funding deals – lots of commission money to go around
    – Use corp credit to “buy back” significant stock, raising the price of remaining stock relative to purchase price
    – Hedge Fund sells off their shares at increased price
    – Profit!!
    – corp fails to pay off debt; too bad, so sad.

    Remington was able to gets lots of cash as a result of increasing sales during the rush. That only made it easier to pillage the coffers. I think we’ll find some familiar patterns when it’s all done.

    Seriously, when a big hedge fund buys into a big corp I think you need to start looking at the exits, whether you are an investor or an employee.

  5. Paul Says:

    So what about Marlin? I hear Remington owns them.

    So is my Marlin 1895SBL 45-70 SS/Laminate rifle a collectors item now? It shoots wonderfully, totally reliable, and flawless stock work! I’d hate to declare it an investment and stuff it away for later years.

  6. Tam Says:

    They filed this morning.

    Paul, Marlin is one of the companies under the Remington Outdoors brand, yes.

  7. JTC Says:

    It’s strange when intelligent people knowledgeable about an underlying product or service ignore the fact that phenomena that are not specific to that product apply more or less equally to things as disparate as guns, houses, and poppies.

    Focusing on the effects of a boom/bust cycle (opportunist acquisitions, debt, skimming, bad product decisions, crap quality control) rather than the obvious (and repetitive) causes of them just misses the point altogether and ensures another round of it at some future time. As they say, not understanding/learning from history -or ignoring it to reinforce one’s own prejudices- dooms to repeat it.

  8. JTC Says:

    …or tulips…one o’ them flower things.

  9. Lyle Says:

    There’s no excuse for a gun and ammo manufacturer being that far in the red this soon after the Obama years. None.

  10. Jay Eimer Says:

    Big Green (or even its subsidiaries) likely won’t go away – they’ll reorg and stiff a lot of their creditors then come back under new management (bye bye, Cerberus).

    Of course the bubble burst by Trump’s win is a factor – but more that they made too many “ban-able” guns that aren’t under scare buy pressure with no Hillary as President.

    But other factors might be things like failing to acknowledge an unsafe trigger design and issue a recall, several bad product launches of new pistol designs, several popular Marlin rifles disappearing from the lineup and not coming back, etc.

    Bottom line though is that Cerberus probably WAS raiding them for profit-taking and didn’t care about these problems – or at least wasn’t going to spend money to “fix” them as that interferes with the profit-raiding.

  11. LKP Says:

    Not surprised. Cerberus is the same group that ran Chrysler into the ground.