Gun News

Remington files for bankruptcy as sales slide and gun control looms

U.S. firearms manufacturing giant Remington filed for bankruptcy protection according to court filings that appeared Sunday.

The oldest firearms maker in the United States referred to falling sales and the possibility of strict gun control laws for their financial woes. Remington saw $1.2 billion in sales in 2013, $865 million in 2016 and just $602 million last year.

Remington filed Chapter 11 for all 13 of its firearms related businesses in hopes of reorganizing a massive debt load amid slowing sales.

The company announced in February that it had reached a restructuring agreement with creditors that would provide for the reduction of about $700 million of Remington’s outstanding indebtedness. The deal also brings $145 million in new capital into the company “markedly strengthening the Company’s consolidated liquidity, balance sheet, and long-term competitiveness.”

The balance sheet restructuring will be effectuated through a pre-packaged joint plan of reorganization to be filed in the United States Bankruptcy Court for the District of Delaware in connection with the Company’s filing of voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code.

Remington’s 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.

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.”

Key elements of the RSA and balance sheet restructuring are outlined below:

  • All existing unsecured and priority claims of Remington Outdoor Company and each of its subsidiaries (other than funded debt claims) will be unimpaired, including trade payables.
  • With the consent of a majority of the holders of the Term Loans (the “Term Loan Lenders”) and the Third Lien Notes (the “Third Lien Noteholders”), Remington Outdoor Company will provide a $45 million delayed draw first-out first lien term loan (the “First-Out Term Loan”) to FGI OpCo. This facility will roll into a debtor-in-possession term loan upon the Chapter 11 filing (the “ROC DIP Term Loan”).
  • The Consenting Creditors will provide a $100 million debtor-in-possession term loan (the “DIP Term Loan”) to fund the Company’s Chapter 11 Cases. Upon exiting bankruptcy, the DIP Term Loan will be converted into an Exit Term Loan.
  • The Company will arrange a new asset-based loan (ABL) facility at emergence, the proceeds of which will refinance the existing ABL facility in full.
  • The Term Loan Lenders will equitize their claims and receive 82.5% of the equity in Reorganized Remington. These lenders will also receive their Pro Rata share of $2.67 million in cash at emergence.
  • The Third Lien Noteholders will receive (i) 17.5% of the equity in Reorganized Remington through the equitization of the ROC DIP Term Loan, and (ii) 4-year warrants for 15% of the equity in Reorganized Remington at a strike price to be derived at emergence based on a $700 million enterprise value. The Third Lien Noteholders will also receive their pro rata share of the remaining cash at Remington Outdoor Company.
Rich Mitchell

Rich Mitchell is the editor-in-chief of Conservative Daily News and the president of Bald Eagle Media, LLC. His posts may contain opinions that are his own and are not necessarily shared by Bald Eagle Media, CDN, staff or .. much of anyone else. Find him on twitter, facebook and GETTR

Share
Published by
Rich Mitchell

Recent Posts

President Donald Trump’s Schedule for Wednesday, June 4, 2025

Schedule Summary: President Donald Trump will receive a briefing, sign some proclamations, and participate in…

7 hours ago

Too Late: WaPo Apologizes For Publishing Hamas Propaganda At Face Value

The Washington Post issued a correction Tuesday, saying it published an article that failed to…

9 hours ago

Elon Musk Finally Shares His True Feelings About Big, Beautiful Bill

Elon Musk sharply criticized President Donald Trump’s “big, beautiful bill” incorporating vast swathes of his…

9 hours ago

Trump Says New Iran Deal Will Not Allow Uranium Enrichment, Contradicting Reports

President Donald Trump said Monday night his administration’s new Iran nuclear deal would not include…

9 hours ago

No, SCOTUS, The Federal Reserve Isn’t An ‘Independent Agency’

The Supreme Court was surely correct in its recent majority decision acknowledging President Trump acted…

9 hours ago

President Autopen

The Autopen scandal raises many questions: Who was running the country? Are all the pardons…

9 hours ago