Remington, one of the biggest and oldest names in the gun industry, is seeking out financiers to help it enter a controlled bankruptcy. The company, headquartered in Madison, North Carolina, owes $950 million in near-term loans and bonds due in two years or less.
Until then Remington will keep their doors open, although they will probably need to take a new approach toward how the company is run. Last year Remington’s gun sales were down by 27 percent for nine months and the company took a $28 million loss overall.
“Historically, January is sluggish, but we were up over 10 percent from last January, so our outlook for the year is bright,” said Justin Anderson, director of marketing for Hyatt Guns. “While sales nosedived last February as the result of the presidential election, we don’t expect the same drop off this year. We are continuing to see new customers buying guns and we expect more new shooters to become customers this year.”
If firearm dealers continue to maintain strong sales than the problem isn’t that people aren’t buying guns, it may be that they’re not buying Remington’s guns.
Remington certainly has gone through ups and downs. Recently the company reshuffled its executive staff after several top execs moved on for personal and professional reasons. Remington also settled a massive class-action lawsuit which led to 122 employee layoffs.
New products are often the lifeblood of gun companies, even the most established firms. Lately, though Remington’s new releases have been viewed as hit-or-miss.
Some products like their 870 TAC-14 have been at the forefront of shotgun innovation, leading to a new class of pump-action guns. Others like the re-invented R51 self-defense pistol have been panned as a failure by critics.
So, what does the future hold for Big Green?
I guess we’ll have to wait and see. Assuming they get their financial ducks in a row, they could start to rebound as early as this year to get things back on track.