Remington dismantlement described

Discussion in 'Rifle Country' started by Varminterror, Sep 27, 2020.

  1. DocRock

    DocRock Member

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    That's not the group that made the offer for the Remington Firearms...
     
  2. Armorer 101

    Armorer 101 Member

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    We will see how this goes but there are two financial power house American Indian tribes or nations that are associated with the bidding. I have not seen either mentioned by name. The Navaho nation and the Seminole nation. Guess which one is in FL and is Headquartered in Ft Lauderdale? Coincidence, perhaps. Oh the irony of it.
     
  3. Varminterror

    Varminterror Member

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    Do you have evidence the Navajo Nation is involved with any of the bids? They reportedly pulled out back in July, expressing disinterest from refreshing their offers from 2018.

    I had not heard anything of the Seminole involvement either, can you cite their connection to Roundhill Group? Considering all of the other successful bidders are relatively well identified, such Roundhill is the only possible guise...
     
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  4. George P

    George P Member

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    From another forum, there was also some speculation that the Indian tribes were interested, that was debunked by others.
     
  5. Nature Boy
    • Contributing Member

    Nature Boy Contributing Member

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    Ahh, do you have a link to the right firm?
     
  6. Armorer 101

    Armorer 101 Member

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    May come from the 2018 interest not today, but if it either is involved they would be quiet about their business interest until the deal is done, if any.
     
  7. mcb

    mcb Member

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    The right firm is a bit nebulous at this point. The best information I have found is in the Bankruptcy Document on the court website below.

    https://cases.primeclerk.com/RemingtonOutdoor/Home-DocketInfo

    Docket #860 has the following information about Round Hill:

    (1) Scott Soura Roundhill Group, LLC.
    Managing Member [email protected]
    888 SE 3 Avenue, Suite 500
    Fort Lauderdale, FL 33316
    Tel: (775) 781-9637

    (2) Richmond Italia
    [email protected]
    888 SE 3 Avenue, Suite 500
    Fort Lauderdale, FL 33316
    Tel: (954) 552-1166

    Below is a repeat from my thread titled: Remington does it again... Bankruptcy No 2.

    Digging:

    https://cases.primeclerk.com/RemingtonOutdoor/Home-DocketInfo

    In docket #870 pdf we see several partners of the correct Roundhill Group LLC listed. One of these people is named Richmond Italia. I cannot prove they are the same person but a quick google search shows the current owner of Gi Sportz is listed as a person of the same name. Ken D'arcy, the current CEO of Remington and board member for Remington Outdoor Company was formerly the CEO of Gi Sportz (google search will confirm this) and though I have not found confirmation in public accessible data I have heard that D'Arcy is still on the board of directors for Gi Sportz. Now the arguably bargain price Roundhill got and the interconnections mentioned above might all be perfectly legal but given the limited public information so far it could also be viewed as a very shady deal by some.

    ETA docket #869 discloses that both Italia and D'Arcy are still board members of Gi Sportz. Again this may all be perfectly legal, and yet it still seems unseemly to me.
     
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  8. d2wing

    d2wing Member

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    Possibly a hedge fund. As a part of the holdings.
     
  9. climbnjump

    climbnjump Member

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    From your prior posts on this issue, I do get your "unseemly" reference and agree that it could be an issue. However, if one looks forward instead of back, this might be good news for Mdl 700 fans.

    One of the fears that some folks have expressed is that the factories that make these would be shut down and assets sold off and the brand would disappear. (And, of course, others have said, "Good Riddance!") But the folks behind G.I. Sportz would probably want to keep things going as they are sort of "firearms" oriented already, if you count paintball guns as "firearms"...

    https://gisportz.com/
     
  10. Gtscotty

    Gtscotty Member

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  11. cdb1

    cdb1 Member

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    I’ve read some of the info but not all of it. I haven’t been able to determine who if anyone is purchasing Remington firearms manufacturing, ie Model 700, V3, 1100. Has that been decided?
     
  12. Varminterror

    Varminterror Member

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    The Navajo Nation wasn’t very quiet when their withdrawal was reported in the WSJ back in July.

    CF59E839-DC38-4789-A297-48D96939F1CB.jpeg
     
  13. Varminterror

    Varminterror Member

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    The successful bidders for the “Non-Marlin firearms business” was this “Roundhill Group,” but folks are having difficulty identifying, affirmatively, who that might actually be.
     
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  14. cdb1

    cdb1 Member

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    Thanks.
     
  15. Picher

    Picher Member

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    I hope Remington will pay more attention to quality control than Marlin has over several years. I've explained elsewhere the numerous problems I encountered with my Model 39A and other guns. Investment cast Stainless 336s and 39A built as well as Rem's R1 1911s would be fantastic!
     
  16. Cannibul

    Cannibul Member

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    faceplam.jpg

    Some of the replies.

    People....PLEASE read the thread. There are a few questions that have been answered multiple times.
     
  17. Slater

    Slater Member

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    Wouldn't it have been cool if Windham Weaponry had bought the Bushmaster brand? Full circle :D
     
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  18. horsey300

    horsey300 Member

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    https://www.nevada-register.com/63246-roundhill-group-llc
    Not looking so good thus far, company not in business several years ago, being revived in florida?
    https://www.corporationwiki.com/California/Los-Angeles/scott-soura/46843737.aspx
    The above listed Italia is the same Italia of GI Sports
    https://www.italiaholdings.com/media check out the video.
     
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  19. mcb

    mcb Member

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    I heard similar slick talk from his buddy Ken D'arcy about how he was going to save Remington and yet here we are and D'arcy got a cool quarter million dollar bonus for the results.
     
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  20. DocRock

    DocRock Member

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    The $250k will have been a retention bonus. It is nearly 3/10s of 9% of SFA as far as CEO bonus goes. Remington has been in trouble for some time, so D'Arcy, as a material insider, has been unable to liquidate any stock grants or execute any options he may have been vested in, usually a significant component of CEO total comp. Obviously, he lost all equity, vested and otherwise, that he had as of declaration of "material insider". As soon as the Board started considering bankruptcy, they will have offered retention bonus to key corporate officers and management to maintain continuity during the proceedings, and keep them quiet.$250k wasn't for doing "a good job" it was almost certainly to keep showing up.

    I am surprised he is a named officer of Roundhill. If I were the back up bidder, I would be challenging the Roundhill bid with the bankruptcy court in the grounds that, as a material insider, D'Arcy will have offered information not publicly available to his fellow investors. Having said that, I imagine Roundhill has had some plausible firewall in place to protect against such a challenge...
     
  21. mcb

    mcb Member

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    D'arcy only became CEO last June 2019. At the behest of the owning banks not the Board of Directors. Remington is privately held so there was no stock to grant. IIRC the bankruptcy paper work called the bonus a performances/merit bonus not a retention bonus. He said he was going to save the company and failed, why would you want to pay him a bonus to retain him unless he actual did what the banks wanted?
     
  22. DocRock

    DocRock Member

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    Good point about the lack of stock. Makes the bonus even more paltry as a piece of compensation. The banks put him in; they wanted him at the helm during bankruptcy to get them the best deal they could as first line creditors. As you note, based on what happened under his tenure, any performance based bonus would be questionable. That's why I bet it was actually a retention bonus.

    I wonder if the banks were aware of his role at Roundhill?
     
  23. climbnjump

    climbnjump Member

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    This particular Roundhill Group, LLC was not in existence in June of 2019 so if the banks were aware, that awareness would have come after his taking the role. This particular Roundhill was formed in Delaware in August of 2019. Which doesn't mean, of course, that the folks behind Roundhill weren't planning their moves already a couple of months earlier in June of that year.
     
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  24. climbnjump

    climbnjump Member

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    The backup bidder would have no grounds to challenge the Roundhill bid as they themselves were aware of D'Arcy's roll at Roundhill at the time they formed their own bid. And the concept of "insider information" being unfair doesn't apply in a bankruptcy case like this anyway. All details of the company being sold are open to all bidders as the court appoints independent auditors to ensure this. It is extremely unlikely that the officers and representatives of Remington held any information back from the court, as that would then leave them open to criminal charges of fraud against the court.
     
  25. mcb

    mcb Member

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    The 1/4 mil bonus was paid in 2019. Seems pretty good bonus to me, if you can swing it, for only half a years work, especial given the poor quality of the work (assuming he was actually trying to save the company). We are not talking about a CEO of a huge multi-billion dollar international company. When D'arcy took over Remington is was a company of less that 1500 employees and was already in very bad shape.

    Ruger pays 30 mil for Marlin and all they get is the trademarks, technical data packages, and a few well used machines they have to pickup and move to Ruger facilities. No property, no people. Vista pays 84 mill for the roughly 800,000 sq foot Lonoke factory and its expansion and all the equipment and personnel. The documents actually list ~200 specified employees that are part of the Vista deal. Roundhill buys all of Remington firearms for 13 mil and gets a 1 million square foot, 194 year old Ilion factory, the Remington museum, plus the property that Storm Lake was on and most of the Remington work force if they want it (they are required to hire at least 200 union employees of the ~700 people still at Ilion). There is more than 13 million dollars in rotary hammer forges and rotor swaggers on the first floor of just one building of the dozen or so at the Ilion facotry. The Roundhill deal may truly be legal but it stinks to high heaven at the same time IMHO.

    This will be my last comment on anything Remington for a while. I have meet Ken D'arcy in person and both from a professional and personal point of view there is nothing I can say about that man that would be "High Road" approved.
     
    Last edited: Oct 2, 2020
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