Remington Arms is a firearms company whose heritage spans over two centuries. The company was founded by Eliphalet Remington in 1816, in IIion, NY. As, any company Remington has experience epic heights and devastating lows as a company. Realizing and producing an iconic Remington 870 shotgun and Model 700 bolt-action rifle. Remington has also face the terrible lows of bankruptcies. The latest Chapter 11 filing and company restructuring occurred back in 2018.
Remington Arms is a firearms company whose heritage spans over two centuries. The company was founded by Eliphalet Remington in 1816, in IIion, NY. As, any company Remington has experience epic heights and devastating lows as a company. Realizing and producing an iconic Remington 870 shotgun and Model 700 bolt-action rifle. Remington has also face the terrible lows of bankruptcies. The latest Chapter 11 filing and company restructuring occurred back in 2018. After filing for bankruptcy back in Spring of 2018 Remington emerged from bankruptcy owned by its Creditors, including JP Morgan and Franklin Templeton Investments. Now, Remington is approaching its potential financial shortcomings with a different strategy. In a article from Reuters, Remington Arms is in heavy negotiation with the Navajo Nation for a potential buyout of the company.
Below is the press release from June 26th from Reuters on the potential buyout from the Navajo Nation.
Remington Arms Co, America’s oldest gun maker, is preparing to file for Chapter 11 bankruptcy protection that could come as early as Sunday night and is in advanced talks for a sale to the Navajo Nation, according to a source familiar with the matter.
The Native American tribe is planning to vote to approve the deal as soon as Friday, the source said. The tribe previously had bid for Remington, planning to drop its most controversial semi-automatic rifles, the New York Times has reported.
U.S. retailers have placed restrictions on gun sales after school shootings, hurting manufacturers such as Remington. A Remington Bushmaster rifle was used in the Sandy Hook elementary school shooting in Connecticut in 2012 that killed 20 children and six adults, making it central to debates over gun policy.
The gunmaker has filed for bankruptcy before, in March 2018 after sales faltered and the company had trouble meeting requirements of its lenders.
Remington emerged from bankruptcy the same year, owned by its former creditors, including Franklin Templeton Investments and JPMorgan Asset Management.
The sources cautioned that the timing of the bankruptcy filing could slip, and that the deal with the Navajo Nation, the largest Native American reservation in the United States, may not come to fruition.
The sale to the tribe would occur through a court-supervised process, the source said, subject to higher and better offers and approval from a judge.
The Wall Street Journal first reported the company’s plan to file for bankruptcy and sell to the Navajo Nation.
Remington and a representative for the Navajo Nation did not immediately respond to requests for comment.
The Navajo Nation made a bid in 2018 for Remington, planning to use an investment trust to fund a purchase that would transform the company by dropping assault-style weapons and focusing instead on hunting firearms for consumers, sales to law enforcement and smart gun technology, the New York Times has reported.
At the end of the day the fate of Remington is in a wait and see mode. We will have to see how this potential bankruptcy and buyout will play out in court. Since the sale of the company will be court supervised.
What do you think about the potential sale of Remington Arms to the Navajo Nation? Do you think Remington is on its last leg? Let me know in the comments below.
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