Remington Seeks Help to File for Bankruptcy
Kevin Felts 02.09.18
Remington is seeking investors to help the company file for bankruptcy. This should come as no surprise for people who have been watching the state of Remington.
It’s sadly common that when companies get bought out by private equity, they get saddled with a ton of debt (which is what finances the buyout) and struggle for years to service it. Remington was no exception in this regard, and that debt overhang put them in a much more precarious position to weather the Trump slump in gun sales than their competitors.
The trigger recall and customer lawsuit haven’t helped. And then came the disastrous RP9 launch.
So when the news broke that Remington was looking for financial help to file for bankruptcy, it came as no surprise, given the state of the company’s finances for the past few years.
(Reuters) – Remington Outdoor Company Inc, one of the largest U.S. makers of firearms, has reached out to banks and credit investment funds in search of financing that will allow it to file for bankruptcy, people familiar with the matter said on Thursday.
The move comes as Remington reached a forbearance agreement with its creditors this week following a missed coupon payment on its debt, the sources said. The company has been working with investment bank Lazard Ltd (LAZ.N) on options to restructure its $950 million debt pile, Reuters reported last month.