Remington does it again... Bankruptcy No 2.

Discussion in 'General Gun Discussions' started by mcb, Jun 26, 2020.

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  1. climbnjump

    climbnjump Member

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    Yes, that's what I believe it is. This is a common thing actually. I was involved in one back in the late 1980's. Similar vehicles are currently all the rage in the stock market where they are known as a SPAC, which stands for Special Purpose Acquisition Company. However these are different in that they go public and then merge a private company into them. And that isn't what is happening here.
     
  2. climbnjump

    climbnjump Member

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    The Nevada company was different from this one. It was established in 2002 and declared inactive 6 or 7 years later. It was apparently started by the same fellow as the current one, though. However the current one was formed in Delaware in August, 2019. (Regardless of where their operations or addresses are, many companies choose to incorporate in the state of Delaware due to the laws that govern business formation there.)
     
  3. George P

    George P Member

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    Same for NV and WY
     
  4. Slater

    Slater Member

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    This from an online article. Now sure how it's going to play out:

    "The City of Huntsville, with a $12.5 million claim, is also seeking return of the company’s Huntsville facility, which was part of a now-defunct 2014 development agreement.

    At the end of 2018, Remington employed about 450 workers. Under its deal with Huntsville and Alabama, it was supposed to have 1,000 workers at that point

    While Remington’s court filings show it has reached agreements with some creditors, the last filing involving Huntsville indicated a deal had not been finalized with the city. In court filings, Huntsville said it’s February 2014 development agreement with Remington included providing the 843,715-square-foot building, and they advanced the sum of $12,500,000 to/or for Remington to pay for the costs of acquiring the Huntsville site and facility. The money was also intended to to pay for a portion of needed renovations on the property.

    Huntsville said it signed a mortgage with the company for the property in March 2014. Huntsville also notes that in filings Remington has valued the collateral in excess of $61 million."
     
  5. danez71

    danez71 Member

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    It's the opposite.. but the same. I've seen similar 1st hand before, twice.

    Basically, top vulture management drains company and takes it private.

    While private, they're not bound by the same rules (SEC, accounting and reporting).

    After a while with creative accounting fluffery and lots of lipstick on the pig, they take the company public and the same ppl that ruined it make millions, again
     
  6. George P

    George P Member

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  7. CopperFouling

    CopperFouling Member

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    Did someone buy UMC? I've always thought the bulk ammunition from UMC was pretty decent for bulk ammunition.
     
  8. .455_Hunter

    .455_Hunter Member

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    I would add that the marking "Remington" on the those models is also very desirable. We haven't quite gotten to the point that a clone 700 would be considered a full-up 700.
     
  9. mcb

    mcb Member

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    No but that is because most of the 700 clones are better than the original 700 it is based on. :D
     
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  10. Cannibul

    Cannibul Member

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    The ammo business is supposed to be purchased by ATK. Parent company of Federal and CCI.
     
  11. mcb

    mcb Member

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    Technically ATK is no more. ATK split in 2015 into two new company, Orbital ATK (its space and defense divisions) and Vista Outdoors that include Federal and CCI along with a bunch of other firearms and outdoor related brands. Orbital ATK was absorbed into Northrop Grumman in 2018. Defense companies change names and merge/split faster than teenage girl changes outfits.
     
  12. Cannibul

    Cannibul Member

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    Thanks. I'm just glad I didn't refer to it as Blount.
     
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  13. George P

    George P Member

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    Or Omark Industries
     
  14. Craig_VA
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    Craig_VA Contributing Member

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    Vista Outdoor is buying the Remington ammo plant in Lonoke AR as part of the bankruptcy settlement.
    From the Arkansas Democrat-Gazette:
    Ammo facility's purchase approved; judge clears sale of Lonoke plant
    by John Magsam | Today at 2:22 a.m.
    "An Alabama bankruptcy judge on Tuesday approved the sale of Remington Outdoor Company's ammunition operation in Lonoke.
    Minnesota-based Vista Outdoor Inc. is the successful bidder for bankrupt Remington Outdoor Company's ammo production facility in Lonoke for $81.4 million. Vista Outdoor includes a wide variety of brands including optics and ammunition makers. The deal includes the Lonoke facility along with the Remington brand and trademarks."

    more info in the full article, linked above.
     
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  15. rust collector
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    rust collector Contributing Member

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    I suspect that Ruger didn't offer to pay $30 million for a bit of blue sky. It will be fun to see where they go with this, but it's all speculation at this point.
     
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  16. spraay

    spraay Member

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    Sad to see Remington go this way. The first gun I ever got to shoot was a Remington Nylon 66. The gun I hunted almost everything (for many years) with is a Remington 870 (I still have it). One of my favorite rifles is the Remington 700. Yes, as of late they have been circling the drain. They've made some great guns, but they don't seem to know how to stay in business. I got bit by the QC issues with my Marlin 1894, but they made it right...
     
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  17. skoro

    skoro Member

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    Leveraged buy-outs = predatory corporatism.

    They've ruined hundreds of American companies and cost hundreds of thousands of jobs.

    But they benefit "the right people" so the procedure is probably written in stone.
     
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  18. MAKster

    MAKster Member

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    The companies buying the parts of Remington are not predators who buy a successful company and bleed it dry with special dividend payouts. Remington was bankrupt. In fact, Remington was the bad actor that caused investors to loose hundreds of millions of dollars as a result of the 2018 and 2020 bankruptcies.
     
    Last edited: Oct 5, 2020
  19. mcb

    mcb Member

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    Between this thread, that I started, and the two following threads where I have been a fairly active poster:
    https://www.thehighroad.org/index.php?threads/ruger-buys-marlin.875654/
    https://www.thehighroad.org/index.php?threads/remington-dismantlement-described.875542/
    I have had my say on Remington and what has happened to it and probably will not say much more. But I will leave this video I found about Roundhill group that seems to be expressing the same thoughts about the Roundhill/Remington-firearms aspect of the asset-auction of the various parts of the Remington Outdoor Company.

     
  20. swingmaster

    swingmaster Member

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    “technically legal”...lol
    That was 6:20 down the drain.
     
  21. MAKster

    MAKster Member

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    I predicted this is an earlier thread when I suggested the current Remington management was using a shell company to buy Remington. A similar thing happened when Winchester executives created US Repeating Arms Company to purchase Winchester.
     
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  22. Legionnaire
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  23. mcb

    mcb Member

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    I wish Remington and its worker the best but as long as Ken D'Arcy (CEO) is still involved with the company I will not be buying anything Remington.
     
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  24. godale

    godale Member

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  25. Carl N. Brown

    Carl N. Brown Member

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    One note on smart guns.

    The South American drug gangs and Australian biker gangs that build Mac10 knock-offs in their workshops do not include smart technology.
    Mandatory "smart gun" tech (with prohibitory pricing) will only fuel a black market in guns that work for anyone. The cheapest guns to build are copies of the Carlos (Swedish K) and the British Sten.
     
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