Yes folks, it is true. One of the oldest gun-makers in America is filing for Bankruptcy. First, be aware that this is chapter 11 bankruptcy, while still not good, it is not the end of the world. It is intended to be a reorganizing period and if approved gives the company the ability to reorganize and fix what they need to to get the company back on track. I am not going to pretend like I know what the real problems are and I’m not going to paint a rosy picture and say everything is going to be great. In my mind, they have a long way to go to get there. They have amassed nearly a billion (with a B) dollars in debt over the past decade when gun sales had been the highest ever. If they could not make substantial profits during a boom in the industry, I’m not sure what they are going to do over the next few years when the political environment favors protection of gun rights which has lead to a major down turn in gun sales in the USA. Hopefully they have a plan, and I would like to think they have folks much smarter than me running things over there.
How can you help? Well, the easiest thing you can do is buy Remington products, but hey, only buy them if you want and like them. Typically companies have to earn customer dollars. We want to see the Remington 700 stay around for a long time, but it has to remain a good product. In my opinion, if they want to succeed, then they should go back to what made them successful in the first place. The Rem 700 is a staple in the rifle industry and it looks like it will remain so. Where as the R51, RP and other new pistols they have released (and recalled) over the last several years seem to be an expensive uphill battle. Stick with what you know.
We personally feel that Remington will be able pull through in some sort of fashion. This isn’t the first time these things have happened to established companies. But it is going to take some work and I would like to see a streamlined and high quality rifle maker emerge from the dust of bankruptcy.
Finally, a word of caution. You will likely read in the press how this bankruptcy is a result of the public outcry and uproar of a Bushmaster (owned by Remington) AR-15 being used in the Sandyhook tragedy in 2012. That seems to be rubbish to me. The supposed story is that investors have “distanced themselves” from Remington because of negative publicity of that event, that doesn’t add up. It seems Bushmaster sales have been fine and I know Remington sales have been good since then. Investors don’t determine profitability, sales and customers do (combined with costs and wise management). It seems the media is just trying to remind everyone of those events and push their agenda… again. I have already seen this mentioned in several news feeds. There were certainly legal costs associated with the lawsuits that came from it, but those suits have been ruled in favor of Bushmaster/Remington. It is unfortunate that there are those still trying to use a tragedy to further their cause.