Remington files for Chapter 11 bankruptcy protections

By Daniel Terrill

One of the country’s biggest gun manufacturers, Remington Outdoor Company, filed for Chapter 11 bankruptcy protections on Sunday. Remington, which owns more than a dozen brands, followed through with plans announced last month to restructure the company’s nearly $1 billion debt load.
With a pre-packaged bankruptcy plan, the North Carolina-based company will reduce the debt size by some $620 million, according to filings with a Delaware bankruptcy court.
Remington generated $865.1 million in sales and $21.6 million in profit in Fiscal Year 2017, the last full year publicly reported, but owes approximately $958 million. Then, three quarters into FY2018, the company reported a $60.5 million loss on $466.7 million in sales.
The bulk of Remington’s debt comes from a $550 million loan and another $250 million in bonds, which the company had payments due in 2019 and 2020. The majority of that debt is owed to lenders like Franklin Resources and JP Morgan.
In the bankruptcy petition, Remington also lists the 30 largest unsecured claims. The top two include pensions for which it owes an undetermined amount. The third is a materials supplier owed $3.1 million. However, the majority of others are also suppliers owed amounts in the hundreds of thousands to just over

Source: Guns.com