NC-Based Gun Maker Remington Files For Bankruptcy

MADISON, NC -- North Carolina-based Remington has filed for bankruptcy, indicating that having a pro-gun rights president in the White House hasn’t helped the oldest gun maker in the U.S. financially, according to reports.

On Feb. 12, Remington Outdoors said it would file for Chapter 11 bankruptcy protection due to a slump in sales, Bloomberg reported. The filing would allow it to remain operational while it repaid its debt of almost $1 billion to its creditors.

News of the bankruptcy filing underscores the tight relationship between the firearms industry and presidential politics, as Trump, who has described himself as a “true friend” to the gun industry, has alleviated fears among gun enthusiasts that they would face firearm restrictions, Bloomberg said.

That confidence undermined profits, according to the report. “Sales plummeted, and retailers stopped re-ordering as they found themselves stuffed with unsold inventory,” Bloomberg said.

Remington’s bankruptcy filing will be made with the U.S. Bankruptcy Court in Delaware and will cut the company’s debt by about $700 million while adding about $145 million in new capital, USA Today reported.

Along with sales, investment has been on the decline for the 202-year-old gun maker after one of its Bushmaster AR-15 rifles was used in the 2012 Sandy Hook Elementary School massacre that left 20 children and six teachers dead, the newspaper said.