Remington bankruptcy today

[bobcat]

I wonder if the trigger issues had anything to do with the bankruptcy? Seems like they had to have spent a lot of money with all the lawsuits and trigger recalls/replacements.

[Knocker of rocks]

I wonder if the trigger issues had anything to do with the bankruptcy? Seems like they had to have spent a lot of money with all the lawsuits and trigger recalls/replacements.

Maybe, but the settlement will never go away.  Even if they close up shop and sell everything at the flea market, DuPont is on the hook for a portion of the settlement.

[Alchase]

I wonder if the trigger issues had anything to do with the bankruptcy? Seems like they had to have spent a lot of money with all the lawsuits and trigger recalls/replacements.

If they had not "denied" it for years upon years while everyone knew their triggers were crap it might have helped.
Add all the other Quality Assurance issues and they cut their own throat.
Many companies with high debt can still be successful, but only if their products are worth buying.
Remington quality turned my away over 10 years ago.
I have seen nothing since then that has turned me back, and if truth be told they have gotten worse.

[Bob33]

I wonder if the trigger issues had anything to do with the bankruptcy? Seems like they had to have spent a lot of money with all the lawsuits and trigger recalls/replacements.

https://www.cnbc.com/2018/02/14/remington-attorney-wont-say-if-bankruptcy-puts-rifle-settlement-at-risk.html#ampshare=https://www.cnbc.com/2018/02/14/remington-attorney-wont-say-if-bankruptcy-puts-rifle-settlement-at-risk.html

"A final ruling on the settlement could take months. If it is upheld, owners would have 18 months to submit their guns for repairs. That is unless Remington's bankruptcy disrupts the process. Because Wednesday's hearing only concerned the settlement, and the bankruptcy petition has not yet been filed, none of the parties addressed

[ctwiggs1]

Just read another article on this today.
http://www.foxnews.com/us/2018/03/25/gun-maker-remington-files-for-bankruptcy.html

Their explanations make no sense.  No manufacturer "ramps up" production without open orders to support it.  They had a crap-ton of debt in 2007, they never did any debt reduction when the markets were good, and now there is another slowdown.

It's basic economics people - excess debt leads to excess problems.    This is a problem that goes back to mismanagement long before Sandy Hook or the Trump victory.  If your company is purchased in 2007 for 118 million, but you have 250 million in debt, you're already in a bad position.

[Magnum_Willys]

Creditors will own it, with no debt or past baggage will be sold to Norma and creditors recoup much of their loan dollars.

[Stein]

Just read another article on this today.
http://www.foxnews.com/us/2018/03/25/gun-maker-remington-files-for-bankruptcy.html

Their explanations make no sense.  No manufacturer "ramps up" production without open orders to support it.  They had a crap-ton of debt in 2007, they never did any debt reduction when the markets were good, and now there is another slowdown.

It's basic economics people - excess debt leads to excess problems.    This is a problem that goes back to mismanagement long before Sandy Hook or the Trump victory.  If your company is purchased in 2007 for 118 million, but you have 250 million in debt, you're already in a bad position.

You are assuming the prior owners wanted to run it well and keep it going.  It could have been yet another example of corporate looting.  Either way, I agree the number of guns sold and who is president had nothing to do with the outcome.

[pianoman9701]

Sad, and ironic that a Trump election victory probably pushed their over the edge.

I bet it was more the trigger recall problem mixed with everything else. They spent tens of Millions on that.

[ctwiggs1]

Sad, and ironic that a Trump election victory probably pushed their over the edge.

I bet it was more the trigger recall problem mixed with everything else. They spent tens of Millions on that.

I doubt it.  Their annual revenue is just sub $1B.  The trigger problem was indeed a problem, but if a recall costs less than 2% of your annual revenue and THAT is what pushes you over the edge, it's back to mismanagement.

I think they got greedy and grew broke.

Curtis