The Strategist

Weapons manufacturer Remington files for bankruptcy


07/30/2020 - 09:20



American weapons manufacturer Remington Arms Co. filed for bankruptcy, unable to cope with the debt burden, despite the fact that demand for weapons in the United States has grown significantly amid the riots.



Michael McConville
Michael McConville
The company has filed for bankruptcy under Article 11 of the U.S. Bankruptcy Code and will try to sell the business. This is Remington's second bankruptcy since 2018, when the company also undertook an Article 11 restructuring to take ownership of Franklin Resources Inc. and JPMorgan Chase & Co.

Remington was looking for potential buyers in an effort to avoid bankruptcy and, as The Wall Street Journal reported in June, was in talks with the Navajo Nation Indian Reservation. These negotiations, however, fell through, and Remington was forced to initiate bankruptcy proceedings.

The company's arms and ammunition divisions can be sold separately, the WSJ source notes.

Remington, founded in 1816, manufactures weapons for hunting, shooting sports, as well as for law enforcement and the army.

Firearms sales in the United States skyrocketed amid riots sparked by the killing of African American George Floyd by police on May 25, 2020. Arms manufacturers, however, face a number of challenges from the coronavirus pandemic, including disruption to supply chains, making it difficult for them to scale up production in response to growing demand.

source: wsj.com