My reply there, as here, is:"Cerberus Capital Management LP, the private equity firm that controls Remington, will lose ownership of the company as a result of the bankruptcy. The company's creditors, which include Franklin Templeton Investments and JPMorgan Asset Management, will exchange their debt holdings for equity in the company."
It might be smart to publicly make the Bushmaster brand go away and roll all of the Bushmaster models in to the Remington line, maybe even calling them "Bushmaster." Just transfer the warranty in to Rem. That kinda looks like what they're doing with Para.It will be interesting to see how the creditors will try to cover their investment. I personally think the Remington brand will survive, but I'm not so sure some of the other brands will. I can see the Bushmaster brand going away because of the negative press (unwarranted, in my opinion) the brand has received for the last five years or so. Besides, does a company need three different brands to sell ARs under?
In a tough market the innovators survive, not the copycats. Remington isn’t innovating.Remington has introduced a model 870 shotgun that is magazine fed:
The comments below the article parallel many of those in our thread.
I dunno. Points for the R51 on "innovation." Looks to me like they also were trying on the RP9. I fondled one and it is very comfortable in the hand and definitely beats the competition on capacity. The RM380 is pretty "innovative" but they bought that innovation (and then tweaked it a bit).In a tough market the innovators survive, not the copycats. Remington isn’t innovating.
http://www.chicagotribune.com/business/ct-biz-remington-gunmaker-bankruptcy-20180213-story.htmlIt's against that backdrop that the legendary gun manufacturer Remington on Monday said it would file for Chapter 11 bankruptcy.
As Reuters reported, the North Carolina-based company announced it had reached a deal with creditors to reduce its $950 million debt load, seeking to write off about $700 million. The company will continue to operate as usual as the case proceeds in Delaware federal court, Remington executives said.
"Normal" for our company in Chapter 11 was to write a check for every material received and walk it out to the dock so the driver would turn delivery over to us. No credit, no purchase orders.Remington said it “will continue to operate in the normal course and will not be disrupted by the restructuring process.” That includes payments to vendors, employee wages and other benefits and customer support.
“Creditors may choose to continue to operate the company or they might try to sell it off piecemeal. Normally, without a prepackaged deal to sell it to another company, these types of endeavors last between six and 12 months before the company emerges from bankruptcy, is sold in total to pay off creditors, or has its assets liquidated.
Careful with the Kool Aid.
Sound familiar? It's obligatory.GOPUSA said:The company also has been overshadowed by lawsuits filed following the 2012 Newtown school shooting tragedy in which 20 first-graders and six educators were killed. The assailant used a Remington-made rifle.
I pretty much agree with everything you just wrote.Reuters, Chicago Tribune, GOPUSA, et al continue to state that Remington's bankruptcy is the result of a recent downturn in the firearms market. I call Fake News Shenanigans! Yes, the industry is in a bit of a slump. The firearms industry business cycle is politically driven. However, as I've mentioned before and documented by a link to Remington's bond rating history, Remington's problems are far more systemic and long term, going back 15-20 years. Remington was losing market share and posting big losses during the longest firearms boom phase in history. Yes, a contracting market tightens the noose more quickly, but that noose has been dangling from Remington's neck for a very long time.
If Remington couldn't make money during a huge market boom, it's going to be all that much harder for them to make money during the current market retraction. On the plus side, this isn't a market bust. It's a relatively mild retraction that is actually not even a return to pre-boom sales figures. Even though sales are off from previous years, sales are still strong and most firearms companies are doing well. Kel-Tec is privately held so their financial condition is much less a matter of public record, but clearly Kel-Tec is doing well. They've increased the prices on their products, moved into more upscale products with higher prices and almost certainly higher profit margins, and they continue to ship everything they manufacture into an endless back order on almost every product in their lineup. They also continue to innovate to create future prosperity. Admittedly, it's difficult to compare a Kel-Tec and Remington. From a size perspective, there is no comparison. However, Kel-Tec and other customer oriented and innovative firearms companies demonstrate that Remington's problems are not shared by the firearms industry at large.
I was not surprised to see the typical unrealistic upbeat comments from Remington management. They're bankrupt but they're doing just swell. Business as usual and things are looking better every day! No matter that their stockholders just lost their entire investment and creditors now own Remington. Everything is just fine!
Absolutely well said.So, if they're not going to go away and they're at their low-point... umm... buy low and sell high? If I had money to invest, I'd probably invest in Remington right now.
Peace favor your sword,
https://www.bloomberg.com/news/articles/2018-02-27/cerberus-hands-gunmaker-to-wall-street-creditors-at-tense-momentAmid rage over the Feb. 14 Florida school shooting, Feinberg’s Remington Outdoor Co. is trying to pull off a swift trip through the court. The process will hand ownership of the guns-and-ammunition conglomerate from Feinberg’s private investment firm, Cerberus Capital Management, to such well-known names as Franklin Resources Inc. and JPMorgan Asset Management and their broad customer bases. The soon-to-be owners, who still must line up fresh financing, won’t operate the company for long, according to people with knowledge of the matter. They’ll seek to sell it in whole or part soon after the reorganized firm emerges from bankruptcy court, the people said.
Only in America can you buy a bunch of stuff with other people's money, scream "11", get to keep it all and not pay for itWall Street Journal said:"According to the Journal, Remington announced that it would file for Chapter 11 last month but the actual filing was delayed after the Feb. 14 shooting at Marjory Stoneman Douglas High School in Parkland, Fla. that killed 17 people.
The paper reported that Remington officials plan to hand over the reins to its creditors in exchange for writing off most of the company's debt. Cerberus Capital Management LP bought Remington for $118 million in 2007, assuming $252 million in debt in the process."
They'll be toxic for investors for about 5 yeas, IMS.Well, it's official. Remington is dead:
(except of course, that they will continue to make guns and it will be business as usual except without a lot of debt that got written off).
Only in America can you buy a bunch of stuff with other people's money, scream "11", get to keep it all and not pay for it View attachment 35379 .
This is true.They'll be toxic for investors for about 5 yeas, IMS.
Peace favor your sword,