Remington Preparing for Bankruptcy Protection?

The Wall Street Journal reported yesterday that Remington “…is preparing to file for chapter 11 bankruptcy protection for the second time since 2018 and is in advanced talks for potential bankruptcy sale to the Navajo Nation…”  The article cites undisclosed sources close to the development and indicates official paperwork could be filed as early as next week. The news comes at a time when firearm and ammunition sales are at record levels, with much of the demand driven by widespread rioting and concern about the COVID-19 pandemic.

It’s not the first time the Native American tribe has made an offer to purchase America’s oldest gun company, though. The New York Times reported in 2018 that, “The Navajo Nation—which controls a $3.3 billion investment trust—sent a letter to Remington in May offering to buy the company for $475 million to $525 million…”

The alleged long-term plan, according to the Times story, was to end sale of modern sporting rifles to consumers and ultimately move manufacturing to the reservation in the Southwest. The firm would then concentrate on military and law enforcement sales, where federal requirements dictate a certain number of contracts be awarded to minority-owned companies. Profits would then roll into creation of “smart guns.”

The offer wasn’t accepted. Instead the Remington filed for chapter 11 bankruptcy protection in March 2018. Two months later it reached an agreement with creditors and emerged to business as usual.

Remington is America’s oldest gunmaker and has a storied history spanning more than 200 years. Its firearms have served on the front line of freedom for generations and likely taken more big game than any other. The company’s financial challenges first came to the attention of gun owners when Cerebus, a private-equity investment firm, purchased Remington in 2007 to combine it into a huge portfolio that included Para Ordnance, DPMS, Bushmaster, Advanced Armament Corporation and many others.  

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