Gunmaker Remington files for bankruptcy

Cheryl Sanders
March 26, 2018

Photo Remington, the American gun manufacturer, filed for Chapter 11 bankruptcy protection on Sunday.

One of the oldest and best-known gun makers in the world, Remington has filed for Chapter 11 bankruptcy protection in order to restructure its massive debt, according to The Wall Street Journal.

For example, firearms sales were brisk under President Obama and in October 2016, when polls showed Hillary Clinton the likely next president, gun sales hit a record, only to drop off precipitously after the election.

The company plans to continue making guns during the Chapter 11 process, which is meant to reduce its debt by $700 million, according to CNN Money. The protest was sparked by the February massacre at Marjory Stoneman Douglas High School in Parkland, Fla.

Nonetheless, the industry is also facing great pressure from the gun control lobby.

Remington's reputation took a hit in 2012 after it was confirmed that Adam Lanza used one of the company's Bushmaster XM15-E2S guns in the CT massacre in which he killed his mother and 26 children and educators at Sandy Hook Elementary School. As a result, a class action lawsuit against the firm is still underway.

The company announced in February that the bankruptcy would be pursued under an agreement with its lenders.

The filing said it expected those efforts to be completed by May - allowing it to reduce its $950m (£668m) debt pile.

Cerberus Capital Management LP, the private equity firm that controls Remington, will lose ownership in the bankruptcy.

"We do not expect this filing to affect the families' case in any material way", said Katie-Mesner Hage, an attorney with Koskoff Koskoff & Bieder, which represents the Sandy Hook families involved in that suit.

This article was updated to include the statement from the Sandy Hook families' lawyer.

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