The US firearms manufacturer Remington Outdoor Company has filed an application for creditor protection and thus bankruptcy. The reason is high debt and declining demand for pistols and weapons.
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From election of Donald Trump to US president, American arms industry is suffering from declining sales. Trump himself is a weapon friend and his policy should actually benefit industry.
Under Obama increased demand for weapons
In fact, opposite is true: according to experts, US population has little concern that gun laws under Trump could be more stringently regulated. And that is exactly what leads to less demand, because clientele has time to do with planned arms purchases. This was different among Trump’s predecessor, Democrat Barack Obama: Because of prospect of stricter regulation, population had been able to deal with guns and pistols during his presidency, and demand had risen sharply during this period.
For bankruptcy of Remington, however, or reasons played a role: The company, which has been in existence since 1816, belongs to investment company Cerberus. This had bought company 2007, but has been searching in vain for a buyer for years. For Remington has high debts after gun manufacturer was sued for allegedly defective rifles and because of school massacre in Sandy Hook in 2012, where, among or things, manufacturer’s assault rifle was used. Cerberus had announced that he wanted to sell Remington.
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In context of bankruptcy, company is now to be taken over by lenders. The company was not disturbed, invoices and wages would be paid furr, group assured.
Even gun company Colt went through bankruptcy
The step is part of an agreement agreed with banks and investors. The bailout plan is designed to reduce debt by 700 million dollars and raise over a hundred million dollars in new capital to maintain business operations.
The boss of Cerberus is Stephen Feinberg, a prominent supporter of trumps. Remington sits in Madison, North Carolina, and is one of largest U.S. manufacturers of ammunition and firearms with around 3,500 employees.
Among fallen sales figures since change of government, or major manufacturers such as Smith Wesson or Sturm, Ruger and Co. have also suffered. From 2015 to 2016, Colt had already passed an insolvency proceeding with a traditional US weapons company.
