Gun maker Remington files for bankruptcy
Gun maker Remington Outdoor Co. filed for Chapter 11 bankruptcy Sunday. The filing was posted on the website of the United States Bankruptcy Court in Delaware, and was first reported by The Wall Street Journal.
Remington, among the nation's oldest gun manufacturers, said last month it had reached a deal with lenders that would grant them ownership of the 200-year-old company. Remington would continue operating and making guns while in bankruptcy.
The Journal says Remington's bankruptcy filing comes "in the face of a heavy debt load, falling sales and lawsuits tied to the Sandy Hook school shooting."
Buried under nearly $1 billion in debt, Remington announced a debt restructuring plan in a statement on Feb. 12, two days before the mass shooting in Parkland, Florida. Since then, some retailers reacted. Among them: Dick's Sporting Goods (DKS) announced and Walmart (WMT) raised the to buy guns to 21.
The Journal says people familiar with the matter told it the bankruptcy filing's announcement of the filing was delayed by the Parkland shooting.
The Associated Press notes that, "Remington makes the Bushmaster AR-15-style rifle that was used in the Sandy Hook shooting in Connecticut that left 20 first-graders and six educators dead in 2012. The company was cleared of wrongdoing in the shooting, but investors distanced themselves from the company's owner, investor Cerberus Capital Management."
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