Remington Reassuring Employees Amid Bankruptcy Reports
A memo sent out to employees of Remington Arms last week is attempting to alleviate worries over media reports that claim the gunmaker is seeking financing that would allow it to continue operating and file for bankruptcy.
"I know these times can be distracting. However, I ask you conduct 'business as usual' and continue to focus on your day-to-day role," said Anthony Acitelli, CEO of the Remington Outdoor Company. "It's our people demonstrating the two core principles of passion for precision and pride in craftsmanship that have made Remington an iconic brand for over 200 years." WIBX obtained a copy of the memo over the weekend.
On Friday, Reuters reported that Remington was reaching out to banks and credit investment funds in search of financing that will allow it to file for bankruptcy. According to the Reuters report, Remington has a $550 million term loan due in 2019 and $250 million in bonds due in 2020. It also sites sagging gun sales and lawsuits like the one following the Sandy Hook shooting, that have placed Remington as well as other gun makers at financial risk. Remington competitor, Colt Manufacturing filed bankruptcy in 2016, according to the report.
Acitelli cited a 'prolonged slump in demand' throughout the gun industry as the reason for Remington's slump. He used the memo to cite changes in sales strategy over the last several weeks and the addition of "three independent sales representative groups which will provide nationwide ales coverage" for its products and brands. "The goal of any action is to enhance Remington's long-term competitive position," he added.