New Details of Remington Bankruptcy Has Ilion Worried
Details of this week's upcoming Remington Arms bankruptcy hearing are out and as expected, it has people in Ilion nervous.
America's oldest gunmaker and Herkimer County's largest employer faces a bankruptcy hearing starting on Monday in hopes of attracting bidders in an auction that seems like it will result in the selling-off of Remington assets, piece by piece.
Details filed in bankruptcy court on Sunday show individual bidders interested in individual Remington assets.
Based on court filings, Remington's shotgun line, which is produced by Remington in Ilion, would be purchased by the Roundhill Group, LLC, a property investment firm located in Virgina. The group has bid on the non-Marlin firearms business, which would include the Remington facility in Ilion and Tennessee.
14 Hoefler Avenue1 Ilion, NY 13357
Steam Plant Parcel
Accessible via Commerce Street2 Ilion, NY 13357
Handgun Barrel Factory 5900 Highway 321 North Lenoir City, TN 37771
Auxiliary Property 6035 Hwy 321
Lenoir City, TN 37771
The bid is to purchase the Ilion and Tennessee facilities and brands for $13 million.
ARTICLE 2. CONSIDERATION
Section 2.1 Consideration. The aggregate consideration for the sale and transfer to Buyer of the Acquired Assets (the “Purchase Price”) shall be:
(a) Thirteen Million United States Dollars (US $13,000,000.00) (the “Gross Closing Cash Payment”), to be adjusted pursuant to Section 2.2(b), and paid and delivered in accordance with Section 3.3(a); and
(b) assumption of the Assumed Liabilities.
Additional portions of Remington's property would go to different bidders, such as Lonoke Ammunitions, which would be sold to Vista Outdoor Company, and the Ruger (Sturm, Ruger & Company), which was rumored to be a bidder of the entire company, would purchase the Marlin Firearms business. Additionally, Frankin Armory Holdings would purchase the Bushmaster brand, JJE Capital Holdings would purchase the Parker brand, and Sportsman's Warehouse would purchase the Tapco brand.
Court document filed on Sunday, September 27, 2020:
- Vista Outdoor, Inc. as the Successful Bidder pursuant to the terms of the Asset Purchase Agreement attached hereto as Exhibit A with respect to the Lonoke Ammunitions Business and certain IP assets; and SIG Sauer, Inc. as the Backup Bidder thereto pursuant to the terms of the Asset Purchase Agreement attached hereto as Exhibit B with respect to the Lonoke Ammunitions Business;
- Roundhill Group, LLC as the Successful Bidder pursuant to the terms of the Asset Purchase Agreement attached hereto as Exhibit C with respect to the non-Marlin Firearms Business; and Huntsman Holdings, LLC and Century Arms, Inc. as the Backup Bidders thereto pursuant to the terms of the Asset Purchase Agreement attached hereto as Exhibit D with respect to certain Firearms Business IP assets and Exhibit E with respect to certain non-Marlin Firearms Business inventory, respectively;
- Sierra Bullets, L.L.C. as the Successful Bidder pursuant to the terms of the Asset Purchase Agreement attached hereto as Exhibit F with respect to the Barnes Ammunitions Business; and Barnes Acquisition LLC as the Backup Bidder thereto pursuant to the terms of the Asset Purchase Agreement attached hereto as Exhibit G with respect to the Barnes Ammunitions Business;
- Sturm, Ruger & Company, Inc. as the Successful Bidder pursuant to the terms of the Asset Purchase Agreement attached hereto as Exhibit H with respect to the Marlin Firearms Business; and Long Range Acquisition LLC as the Backup Bidder thereto pursuant to the terms of the Asset Purchase Agreement attached hereto as Exhibit I with respect to the Marlin Firearms Business;
- JJE Capital Holdings, LLC as the Successful Bidder with respect to the DPMS, H&R, Stormlake, AAC, and Parker brands;
- Franklin Armory Holdings, Inc., or its designated assignee, as the Successful Bidder with respect to the Bushmaster brand and certain related assets; and
- Sportsman’s Warehouse, Inc. as the Successful Bidder with respect to the Tapco brand.
All of these bids will still have to be approved by the bankruptcy court, which will begin the review process on Monday in federal bankruptcy court in the Northern District of Alabama at 10 a.m. Eastern Time.
Locally, one employee of Remington told WIBX he's nervous. "It looks like we're being purchased by another investment firm, and based on past history, that has a lot of us very worried." He asked not to be identified.
Ilion Deputy Mayor Chuck Lester was more optimistic. "I would have loved to have Ruger buy the whole thing, but, if that doesn't happen I hope the new owner keeps manufacturing in Ilion where it all started and that they keep employment high here," said Lester. "We have an amazing work force here and we support them one hundred percent. We saved Remington a ton of money with cheap electric in the past which helped them then and we're willing to work with whoever takes over the company now. Let's just keep our workers employed," he added.
Remington Arms was founded in 1816 in Ilion, NY. The gunmaker sells guns throughout the nation and to more than 60 foreign countries.
Updated on 9/29
UMWA issues Remington bankruptcy update
[TRIANGLE, VA.] As the Remington Arms bankruptcy sale process heads to completion in Alabama, the United Mine Workers of America (UMWA) International President Cecil E. Roberts issued the following statement today:
“Publicly available documents filed over the weekend with the Bankruptcy Court indicate that there could be a successful bidder for certain assets of Remington that would include the Ilion, N.Y., plant, and that bidder would agree to keep the plant open. This is, of course, subject to a final decision by the Court.
“Our goal throughout this process has always been to keep that plant open and our members working. That appears to be on track, at least to this point. The UMWA has been in talks with that bidder about our collective bargaining agreement at the Ilion plant and we will be talking with them further in the coming days should their bid be accepted by the Court tomorrow.
“We do not yet know what the final outcome of the Court proceedings will be, nor do we know what the final outcome of our talks with a successful bidder will be. But this is another step in the process, and I believe it to be a positive one for our members.”
Brindisi Statement on Potential Remington Bidder Reports
Following reports and a statement from the United Mine Workers of America, Congressman Anthony Brindisi issued the following statement:
“I stand with the hardworking men and women at Remington Arms and the United Mine Workers of America. Any bidder would be lucky to have such a dedicated and skilled workforce. I am encouraged by this news and will continue to fight for these good-paying union jobs and the village of Ilion. We are not out of the woods yet, but this is an important step in the process. Any worker dealing with the uncertainty should feel free to contact my office for assistance.”