Remington Files for Bankruptcy

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Speedo66

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Moment Remington yesterday filed bankruptcy papers, saying it had dept of $100-500 million, while it valued it’s assets at the same amount.

The company had no comment about it when asked by the news media.
 
I'd like to see a manufacturer like Palmetto State Armory buy the patent for the 870 and bring it back to life. I have a feeling pump shotguns will see renewed interest in the not so distant future.
 
They'll be back .IMO This bankruptcy is just a way to get some monkeys of their back.
 
I hope Remington pulls through. Colt also went through a Chapter 11 bankruptcy (I have no idea what that means) and they are still kicking.

I'd like to see a manufacturer like Palmetto State Armory buy the patent for the 870 and bring it back to life.

The Remington 870 was released in 1950. I hope they don't buy the patent! If it comes down to it, maybe the tooling though.
 
So is it likely they will be able to simply not pay some of their bills and then go back to business?

IF that is what happens, it is terrible. It will be the smaller guys who get screwed.
 
As I understand it Chapter 11 allows them to reorganize and payoff debt over a period of time.
It doesn't necessarily mean anyone is getting screwed, yet.
 
From Fox News.
The paper reported that Remington officials plan to hand over the reins to its creditors in exchange for writing off most of the company's debt. Cerberus Capital Management LP bought Remington for $118 million in 2007, assuming $252 million in debt in the process.
Not sure how that works, but it sounds like Cerberus is washing their hands of Remington.
 
There was a thread on this last month, when they announced they were going to file.

Basically, chapter 11 has a number of advantages that allows the filer to get their act together under the protection of the court, and creditors have to sort-of queue up to get paid, as organized and directed by the court.

Remington is also giving up control to its creditors in exchange for debt forgiveness, among other things...
 
Cerberus will be out in 45-60 days, after the process has run.
Denis
 
The 870 is a great pump shotgun but the express model most people purchase has been going downhill since the 2000s.
I prefer the much stronger and only slightly heavier steel receiver of the 870 over the Mossberg.

They made the express such a budget gun that it required someone with some handyman skills to disassemble and polish them up without overly wearing or damaging anything and make them decent, which is something less and less of the population is capable of or devotes the time to do anymore. Having to deburr and smooth up things.
I understand why they felt the need to do it though, as the AR took over the market they had to keep the price of the shotgun lower than the ever decreasing cost of an AR-15 for the penny pinching segment of the market the express was targeted at, because an AR was preferred by many. A semi auto modular rifle that works from point blank to long range with less recoil, or a chunky shotgun good for just close range meant the only way it kept any market was being cheaper than AR-15s which I think it next to impossible now without making a total piece of junk shotgun.
The other big seller, the remington 700 once had limited competition in its price range, and its high profile use in law enforcement and military allowed them to charge a little more for it. Well it has a lot more competition now, is less useful than many semi auto platforms or bigger cartridge bolt guns in military use, and even some semi auto platforms can be similarly accurate for not a huge increase in price.

Those were probably its two biggest money makers and they just don't command as much of the market. The AR has become THE gun in recent times because it is so versatile and decent entry models so cheap. Modular semi auto that can be heavy or light, long range or short range, scoped or red dot sighted easier and without gunsmithing, etc

That is probably one of the downsides of the AR, it has become such a go to gun for so many people that it is replacing a lot of other guns, and so where restricted a lot of the guns it replaced are not around anymore and don't enjoy as big of a market to keep costs low.

If I had to guess a lot of manufactures have in recent years finally jumped on the AR-15 bandwagon since it was doing so well. Even many that once had competing firearms like Rugers mini-14 jumped in and started making quality AR-15s. If this latest political unrest has them questioning if those guns are now going to make them much money, then they have shifted their business towards a product they don't feel as confident in, and have chosen to cut losses.
 
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Chapter 11 lets the company keep operating under some difference guidance while trying to get their finances in order.
The ones who get hosed are those who own common stock. Ask me how I know.
 
kozak6 wrote:
Colt also went through a Chapter 11 bankruptcy...

Actually Colt went bankrupt in 1992 and emerged in 1994 when Zilkha & Co (current major shareholder) bought the assets out of the bankruptcy court. Colt returned to the bankruptcy court in 2015 emerging again in 2016.
 
The 870 is a great pump shotgun but the express model most people purchase has been going downhill since the 2000s.
I prefer the much stronger and only slightly heavier steel receiver of the 870 over the Mossberg.

They made the express such a budget gun that it required someone with some handyman skills to disassemble and polish them up without overly wearing or damaging anything and make them decent, which is something less and less of the population is capable of or devotes the time to do anymore. Having to deburr and smooth up things.
I understand why they felt the need to do it though, as the AR took over the market they had to keep the price of the shotgun lower than the ever decreasing cost of an AR-15 for the penny pinching segment of the market the express was targeted at, because an AR was preferred by many. A semi auto modular rifle that works from point blank to long range with less recoil, or a chunky shotgun good for just close range meant the only way it kept any market was being cheaper than AR-15s which I think it next to impossible now without making a total piece of junk shotgun.
The other big seller, the remington 700 once had limited competition in its price range, and its high profile use in law enforcement and military allowed them to charge a little more for it. Well it has a lot more competition now, is less useful than many semi auto platforms or bigger cartridge bolt guns in military use, and even some semi auto platforms can be similarly accurate for not a huge increase in price.

Those were probably its two biggest money makers and they just don't command as much of the market. The AR has become THE gun in recent times because it is so versatile and decent entry models so cheap. Modular semi auto that can be heavy or light, long range or short range, scoped or red dot sighted easier and without gunsmithing, etc

That is probably one of the downsides of the AR, it has become such a go to gun for so many people that it is replacing a lot of other guns, and so where restricted a lot of the guns it replaced are not around anymore and don't enjoy as big of a market to keep costs low.

If I had to guess a lot of manufactures have in recent years finally jumped on the AR-15 bandwagon since it was doing so well. Even many that once had competing firearms like Rugers mini-14 jumped in and started making quality AR-15s. If this latest political unrest has them questioning if those guns are now going to make them much money, then they have shifted their business towards a product they don't feel as confident in, and have chosen to cut losses.

I would say a big issue is not that people are not interested in them, it is that they really have not kept up with any new and interesting developments. See what Ruger and Mossberg did with bolt actions, while the Model 700 has stayed bland and underdeveloped. Similarly they had a good thing with the 7615, but never pushed that concept as far as it could go. Instead of building on it, they just dropped it. Now would be the perfect time to bring it back for places like CA and NY, but they have not.
 
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