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SOURCE: AP
Remington Outdoor Co., the nation’s oldest gun maker, filed a prepackaged reorganization plan with the U.S. Bankruptcy Court of Delaware under Chapter 11 of the bankruptcy code.
The plan would allow Remington Outdoor Company to stay in business while restructuring its debt. The plan allows for Remington to reduce its debt by $700 million and contributes $145 million of new capital into its subsidiaries, according to the company.
Remington said in a statement that its operations “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,” it said.
Remington is owned by the private equity firm Cerberus Capital Management. Cerberus will give up that ownership once restructuring is complete, a spokesman said Monday.
Remington’s future is uncertain, but it sure looks like they’re not nearly giving up. With the R9 handgun, Model 700 Tactical Chassis rifle, and new R1 double-stack 1911, Remington seems to be making an effort to ramp up their competitiveness in today’s market to fight the waning sales of their long-standard more traditional offerings.
