Remington's bankruptcy filing brings questions about its future in Rockingham

Trump effect triggers end of gunmaker

Trump effect triggers end of gunmaker

The unfortunate news from Remington Outdoor Co. falls in line with a trend being seen across the firearm industry.

That hoariest of right-wing boogeymen - a new Democratic administration hellbent on taking everyone's guns - had returned. Between December 2015 and December 2016, the Federal Bureau of Investigation reported record numbers of background checks. Fears of a crackdown have tapered off under a president who called himself a "true friend" of the National Rifle Association. Remington's sales have fallen sharply as gun...

Creditors will end up with a stake in the company A pre-packaged plan of reorganization is expected to be filed with the United StatesBankruptcy Court in Delaware. Remington says the restructuring plan will reduce its debt by $700 million.

Remington said it "will continue to operate in the normal course and will not be disrupted by the restructuring process".

"Difficult industry conditions make today's agreement prudent", Executive Chairman Jim Geisler said in a news release.

Remington's fiscal 2017 sales were down 27.5 percent to $466.7 million through the third quarter. These gun buyers have come to be known as "super owners" and one study, conducted by Harvard and Northeastern universities, concluded that about half the guns in America are owned by only 3 percent of the adult population, with an average of 17 firearms each.

Remington, one of the largest American manufacturers of ammunition and firearms, said its business decline has been deteriorating since President Donald Trump took office, even though Trump unwaveringly supported Americans' right to bear arms. "Sales plummeted, and retailers stopped re-ordering as they found themselves stuffed with unsold inventory they'd built up in anticipation of a Clinton presidency". That included the checks declining in 10 of 12 months, and by an 8.4 percent decline overall to 25.2 million. The dip is significant, but the figure remains significantly higher than in previous years.

Remington has been around for over 200 years, dating back to 1816 when Eliphalet Remington II worked with a local gunsmith to create a flintlock rifle.

"As I understand it, Remington has transferred control of the company to creditors, thus wiping out all shareholder equity", said Zagros Madjd-Sadjadi, an economics professor at Winston-Salem State University.

A lawsuit filed by family members of the Newtown tragedy victims says Remington should not have sold such a risky weapon to the public.

Remington also recently settled a class-action lawsuit over alleged defects in some of its rifles, as CNN Money reported.

He says that his business is now up and that he doesn't expect the bankruptcy notice from Remington to change things.

Barber also has been pushing to ban secrecy in civil-lawsuit settlements in federal court, saying that information on defective products should be made public, forcing companies to fix the defects or face economic consequences from consumers.

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