The New York Times reported Tuesday that Remington has officially filed for Chapter 11 bankruptcy protection. The filing makes the second bankruptcy for America’s oldest gunmaker in two years.
Remington filed for Chapter 11 in U.S. Bankruptcy Court in Decatur, Ala., NYT reported. This comes after a purchase by Navajo Nation, only a few weeks ago, seemed promising. However, that deal reportedly fell through, leaving Remington no other option.
Remington Files for Second Bankruptcy
The bankruptcy comes as the firearms industry seemingly continues to fire on all cylinders. The global COVID-19 pandemic and civil unrest across the country since the death of George Floyd have contributed to fuel a massive spike in gun sales. However, for Remington, other problems exist.
“Remington’s problem is mostly a problem of Remington mismanagement and not a reflection of larger trends in the gun world,” UCLA School of Law professor Adam Winkler, who specializes in gun policy, told NYT. “I don’t think we’re going to see a whole bunch of gun companies going under now.”
But since Sandy Hook, Remington remains a steady target for litigation. In November 2019, even the Supreme Court ruled Sandy Hook victims’ families could proceed with lawsuits against the company, a devastating blow. So even though Remington successfully emerged from bankruptcy only two months after it filed in 2018, Big Green still hasn’t managed to right the financial ship.
Clearly, Remington remains an iconic, profitable brand. So this likely doesn’t spell impending doom for the company. The bigger question in the room arguably centers on which companies remain. While former owners assembled a massive company full of brands, selling some of those positions could prove necessary. A previous Navajo bid included wording on selling off AR manufacturers/brands, for example. So these questions are more than speculative.
Regardless, one would think some serious change could be coming this time around. So stay tuned, we’ll report more information as it becomes available.
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