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:
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