Remington Arms Reaches Funding Deal to Operate in Bankruptcy
Remington Outdoor Company has reached a Restructuring Support Agreement with its creditors, clearing the way for the financially strapped gunmaker to operate in bankruptcy, according to a news release. The RSA reduces approximately $700 million of Remington debt and includes $145 million of new capital towards Remington's operating costs.
According to the release, Remington will file to reorganize under Chapter 11 of the United States Bankruptcy Code. Business operations will continue to operate in the normal course and will not be disrupted by the restructuring process. Payments to trade partners, employee wages and other benefits, support for customers, and an ongoing high level of service to consumers will continue without interruption.
Employees who asked not to be identified told WIBX today that company officials met with all salaried workers and informed them of the decision. "We were told that there will be no layoffs or pay cuts and no plant closures," one worker said.
Executive Chairman of Remington, Jim Geisler, commented, "Since its founding over 200 years ago, Remington has been a uniquely American company and brand. Our longevity is owed to generations of loyal customers and hard-working employees who met challenges and delivered results. Difficult industry conditions make today's agreement prudent. I am confident this regrouping ensures that Remington will continue as both a strong company and an indelible part of our national heritage."
Remington suffered from sinking gun sales in 2016 after some believe, the election of President Donald Trump quelled fears of guns being taken away or restricted under a Hillary Clinton administration. The gun market was booming during the months leading up to election day, and gunmakers increased production in anticipation of increased sales.
"We have an outstanding collection of brands and products, the unqualified support of a vibrant community across the industry, and a deep and powerful culture. We will emerge from this process with a deleveraged balance sheet and ample liquidity, positioning Remington to compete more aggressively and to seize future growth opportunities. We look forward to serving our customers, our partners throughout the industry, and our many fine employees, now and long into the future," said Anthony Acitelli, Remington's Chief Executive Officer.