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U.S. gunmaker Remington seeks financing to file for bankruptcy

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  • wildrider666

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    Gun folks always remember bad deeds done by Mfgs, Colt imposed AR15 sales ban to civilians and S&Ws past pro-gun control agreement with the Feds come to mind.

    There are several very cheap ($) handguns manufactured primarly for the uninformed newby. Their reputations for functionality is in the crapper yet they sell enough to stay profitable or just change names to start a new reputation. I don't consider HiPoint in this category, though inexpensive overall they are very functional. With the higher production numbers of the better Mfgs there is still the occasional lemon or engineering flaw that does not surface until a lot of units hit the street. It is how Mfgs respond to these issues that sets their reputation.

    Remington is not alone when it comes to Mfgs pushing cost cutting and higher production numbers. Quality Control is the first area to degrade on the production line and inspection/test. The Kimber lineup quaility across all models 10 years ago was outstanding, not so today IMHO.
     

    Mouser

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    Remington is not the brand they used to be...all those acquisitions require a bunch of money to be borrowed...and yes it is amazing a company could go through the mad buying era of the past 10 years and go out of business...but that debt was racked up prior to the current situation of over supply and falling prices...a sort of bubble not to dissimilar to the housing bubble...a strong market can make a business sloppy and a strategic strategy of growth through acquisition can get out of control. Now the game of bankruptcy, unsecured debt written off, swap debt for equity and recapitalize the business, sell off an/or close non-performing business units and life goes on.

    I worked for a company owned by Cerberus...always thought it an odd name...the three-headed dog guarding the gates of Hades. That is not the only venture capital group with a name from Greek mythology.
     

    Viking1204

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    I collect Marlins and it pisses me off they bought Marlin and tarnished its good name. If you're in debt and struggling why the hell you going to buy out a company like Marlin and take it down with you, just stupid.
     

    M60Gunner

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    IMHO the problem here is globalism. Read up on Cerberus Capital Management, here is one of the links I found https://www.prnewswire.com/news-rel...nt-regarding-freedom-group-inc-183889361.html Past chairmen of the firm (owned by Steve Feinberg) include Dan Quayle and John Snow. Cerberus is the parent company of DynCorp, while J.P. Morgan provides fund administration and related securities services for the company, and they previously (conveniently) owned Chrysler and GMAC (financial arm or GM) during the taxpayer funded bailout.
     

    Mouser

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    The world of business an politics is intertwined...hence the term crony capitalism. A bunch of lawmakers invest, buy stock and pass laws to give that business tax breaks, price protection and other sorts of protections...why is Amazon doing so well and who holds its stocks? Why do Pharmaceuticals cost so much while congress ignores the commerce clause to allow competition across state lines...I could go on and on. The old saying 'follow the money' is a truism...why is media and news so biased? Follow the money.
     

    FrommerStop

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    The world of business an politics is intertwined...hence the term crony capitalism. A bunch of lawmakers invest, buy stock and pass laws to give that business tax breaks, price protection and other sorts of protections...why is Amazon doing so well and who holds its stocks? Why do Pharmaceuticals cost so much while congress ignores the commerce clause to allow competition across state lines...I could go on and on. The old saying 'follow the money' is a truism...why is media and news so biased? Follow the money.
    There is a lot of truth in what you wrote.

    Big thing was the management people at the top were idiots. There is a difference between a highly competitive industry like the gun industry and other forms of business where competition and product competition is less.
    While it is illegal in civil court to make a gun with a poor safety mechanism, there is no law against making a jamomatic or something which plain does not work. Do that in pharmaceuticals the consequences are severe.
    For the marlins from what I read was remington never got the correct drawings and others things needed for making a decent rifle and on top of it they moved the factory, but not the people and machining that was making the marlin rifles.
    The marlin rifles were the biggest loss, everything else they make can be gotten from some other gun maker. During the obama years people were buying more into weapons they thought were going to be made illegal and lever and bolt guns were not high on that potential ban listing.
    I am not sure what the state is for the winchester lever gun models which is the main competition for the marlin lever guns. I guess one can buy henry guns instead.
     

    Mouser

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    Some news: https://www.americanrifleman.org/ar...wsletter&utm_medium=insider&utm_campaign=0218

    i have some first hand experience with Cerberus as I worked for a company owned by them....looks like they are exiting the business. It would be interesting to know how much money they were able to extract from Remington before filing chapter 11 and how much unsecured debt is going to be eaten by other people when this all washes out.

    My hope is that the Remington brand for quality will be restored and we enjoy their products once again, and their acquisitions like Marlin and Bushmaster continue to be operated.
     
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