Whenever a more pro-gun, pro-Second Amendment president assumes office, gun sales take a hit as fears of disarmament simmer down.
Many renowned companies have seen their overall sales slump after President Trump’s election in November 2016. Why? Less hostility to firearms, fewer threats to their livelihood.
I’ve heard similar chatter among friends in the firearms industry who’ve said business hasn’t been so good —largely due to excess inventory of guns and ammunition plus competition from smaller, more innovative companies. Let me be clear: This typically happens under Republican administrations and isn’t isolated to Trump.
Remington Outdoor Company is one of the oldest American gun companies known for its quality shotguns. It can be surmised the Madison, NC-based company could place more blame on bad management for its financial woes.
As Bloomberg News reports, Stephen Feinberg of the firm Cerberus Capital Management—who also supported Trump in his presidential bid—acquired Remington in 2007. Under his management, the company has been saddled with nearly $1 billion in debt. Last year, the company laid off 122 workers from their Ilion, NY plant. They recently expanded operations in Huntsville, Al.
Remington Outdoor Company (“Remington” or “the Company”) today announced that it has reached a Restructuring Support Agreement (“RSA”) with creditors holding a majority of the FGI Operating Company, LLC (“FGI OpCo”) Term Loans due in 2019 and 7.875% Senior Secured Notes due in 2020 (the “Third Lien Notes”) (collectively, the “Consenting Creditors”). The RSA provides for the reduction of approximately $700 million of Remington’s consolidated outstanding indebtedness and the contribution of $145 million of new capital into Remington’s operating subsidiaries, markedly strengthening the Company’s consolidated liquidity, balance sheet, and long-term competitiveness.
The RSA, subject to certain conditions, represents the commitment of the Company and Consenting Creditors to support a comprehensive restructuring of Remington’s existing funded indebtedness. 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.
It’s unsure how this restructuring will unfold and what the fate of Remington Outdoor Company will be. Will “Trump Slump” continue to have adverse effects on gun companies? Will threats from gun control activists and similar groups continue to loom overhead? We’ll continue to monitor the situation here at The Resurgent.