Remington Arms, old Big Green, will be filing for bankruptcy in 2020. The renowned gun maker filed for bankruptcy not too long ago in 2018 but was unable to turn around despite the current American gun-buying frenzy.
Even with the unprecedented demand for firearms due to civil unrest and the upcoming Presidential election, Remington was unable to streamline its business model and stay afloat.
Rumors of Remington’s upcoming bankruptcy sprung up earlier this year in June, with the Navajo Nation coming to the table as a potential buyer. According to Fox Business, talks with the Navajo have fallen apart, leaving Remington without any front-runners looking to buy.
While it’s true business has been good, Remington was not able to repay the company’s remaining debts fast enough. Remington paid down at least $775 million following the company’s 2018 bankruptcy, falling short of the $950 million mark needed to remain in business.
The company will be filing a petition for Chapter 11 bankruptcy in Decatur, Ala. Following the 2018 bankruptcy the major owners of Remington were Franklin Resources, Inc. and JPMorgan Chase & Co.
Remington saw serious mismanagement during its years as a part of the Freedom Group, owned by Cerebus Capital Management, starting in 2007. Later renamed the Remington Outdoor Company, Remington Arms’ debt almost quadrupled from $252 million to $950 million by 2017.
See Also: Remington in Trouble Again? Court Filing Claims Repaired Model 700 Triggers Still Malfunctioning
Remington faced product recalls and failed product launches along with multiple legal battles in the last decade leading to a decline in the centuries-old company’s reputation. Remington was founded in 1816.
The Remington name still holds value and the company makes products that are in extreme demand, especially right now, but it’s clear that some of the company’s institutional problems may be too big for a quick fix.
The FBI and the NSSF are reporting record-breaking numbers in terms of background checks and sales. Gun stores across the country are selling stock as fast as it arrives, often to first-time gun owners.
Still, Remington’s current debt is much smaller than it has been in a long time, so it’s possible that this is a temporary setback. Fingers crossed that Big Green returns to its former glory.