Change in a Changing World: Remington Facing Bancrupcy Again

[pietro]

.

https://www.wktv.com/content/news/Ilion ... 44791.html

Remington either finds a buyer or heads to auction in September. :sad:

Keep in mind that "Remington" also owns Marlin Firearms & other related companies.


.

[salpal48]

It is very Unfortunate That all the major Gun manufacturer are Going out. These were all the Companies That helped the USA be what it is today. From The civil War to the present. Throughout history US weaponry was one for the best. Just a Current sign Of the time. When the war comes with China or russia, we going to have to ask them for weapons Before we start

[Plate plinker]

It is very Unfortunate That all the major Gun manufacturer are Going out. These were all the Companies That helped the USA be what it is today. From The civil War to the present. Throughout history US weaponry was one for the best. Just a Current sign Of the time. When the war comes with China or russia, we going to have to ask them for weapons Before we start

Colt, FN, Sig...... there are other better options. Still sorry to see a once great company meet its demise.

[AK Caster]

Good riddance. Once the bean counters got ahold of the company the quality went downhill fast. If you cant make a quality product at a profit then you shouldnt be in business. Been a life long fan of Remington and Marlin but if its their time to go..............then goodbye. They dont make anything that is best in the category.

[Pressman]

Remington is the victim of a corporate raider, they drain the money then leave the company swamped in debt till it cannot survive. The raider is only after the money, nothing else matters.

[slim1836]

Perhaps Trump will bail them out, after all, past a president has done similar.

Slim

[farmbif]

sad for sure, but reality is I much prefer the bergara to the current production 700 at the same price and definitely prefer a Henry over recently produced Remlin

[facetious]

Remington is the victim of a corporate raider, they drain the money then leave the company swamped in debt till it cannot survive. The raider is only after the money, nothing else matters.

There is a good chance you hit it on the nail. I worked in newspaper 40 years in production , and this is exactly what they did. They buy a distressed company that is out of options . They then sell off all property to a subsidiary that they own and rent it back. They then start cutting everything a little at a time to keep profits at a target rate, they don't want to do it to fast if they can get a good cash flow but they will keep cutting it down to hit their target. When they get to the point that they can't hit that target and the property is worth more than cash flow it is sold off or closed. I watched them do it the last ten years I worked. In newspaper they call them vulture funds and their only adjective is to squeeze out all the value they can and dump them for what they can get.

Not putting up with all that BS. has been the best part of retiring .

[MUSTANG]

Remington is the victim of a corporate raider, they drain the money then leave the company swamped in debt till it cannot survive. The raider is only after the money, nothing else matters.

This post is spot on. Remington (many readers on this Forum, like myself, have a special fondness for Remington - but they are not alone. Remington is only a drop in the bucket of damage done to Industry and the American Public by what I call the YARVARDS. Yarvard is a slam on the Harvard/Yale/elite Universities that breed 2nd to 12th generation MBA's to rule our businesses and Politicians to Rule our population through Law and Elected positions.

Being retired, I watch a lot of the Business shows the first 3 - 4 hours many mornings. Amazing how excited the talking heads get about Corporations buying up other companies. Inevitably these are companies that no longer develop new things; they simply buy up patents, destroy creative small businesses through legislative partnership or lawsuits, or as mentioned - buy them up and strip al their assets leaving the bloody business carcass to die.

[Pressman]

Mustang, I found a post related to this that explained exactly how it was done. Then forgot where I saw that post.

[Der Gebirgsjager]

Don't know if this will interest anyone, but Midway has a sale going on for Rem. receivers. That is receivers only.. bolts are available but cost twice as much as the receivers! Still, if one is contemplating becoming a custom rifle make in the future they might want to lay a couple in as a hedge against Remington's possible demise.

[bakerjw]

For our first Christmas, my wife bought me a Remington 788 in .223. One of the finest small bore rifles that I own.

[waksupi]

Remington is the victim of a corporate raider, they drain the money then leave the company swamped in debt till it cannot survive. The raider is only after the money, nothing else matters.

You are right on that one. all of their barrels used to be made here. When the bean counters showed up, they moved the operation down south, with no equipment or experienced operators. Cheaper labor.

[rockrat]

Wal-mart had a sale this past few days. Complete 700 Rem rifles for $239. Savage axis for $124 and Savage wood stocked with 3-9 weaver scope for $189. At one store there was a Henry 44mag for $388, which the clerk said lasted for a few minutes

[megasupermagnum]

It's about time, and I pray there are no bail outs. Remington and associated brands are the only ones hurting, and it is all their fault. As far as I can tell, every other firearm manufacturer, at least in the USA, are booming right now. I guess I shouldn't blame Remington, I should blame the ones who own them. They drug Remington through the gutter, their guns have sucked for something like 15 years now. They brought Marlin into the mix, ran them into the gutter. They bought H&R and flat out closed their doors. I'm sure there are others. They are nothing but a parasite company.

I'm sure someone will buy a name like Remington, and I hope they go back to being the way they used to be. My eyes are on H&R. Nobody has ever filled that simple, low cost, switch barrel single shot spot.

[FISH4BUGS]

What no one has mentioned is that this might just be a strategy to avoid losing the Sandy Hook Elementary School shooting suit. A number of lower courts have said that they were responsible for the murders because of the nature of the rifle used (Bushmaster) and their marketing (militaristic tacti cool marketing that appeals to weirdos).
I can only pray that suit is eventually thrown out. Any reasonable person would see that the person is to blame - not the gun. But juries are all broken hearted when it comes to children....murdered....by this weapon of war....etc.
It also could be that the legal defense costs are going to be so high so there is another reason.
If they declare bankruptcy, are bought by someone or some other company, and come out a new company, the ongoing lawsuit is against a company that no longer exists.
I'm sure that whoever buys them will not be buying the liabilities.
I don't think they are going anywhere.

[salpal48]

This is Nothing New In the US Corporate business strategy . When I was working In corporate America, the main trick is to completely Run @ a loss but Yet show a Paperless profit. All major companies learn very quickly to expense all the profit or pay tax on it. This is a loop hole in the tax system for corporate america. Buy new Company Cars, Boats, and other perks to expend the cash rather that pay uncle sam. This is all legal . In simple terms, The guy driving around In his company truck, or leasing one having his company paying For it
This has been going on for years and nothing going to be done about
So the next time you see Your Construction pal driving his truck all Over , yes he screwing the government as well. so it's not only big Companies

[Shawlerbrook]

I grew up in the shadows of the Ilion plant and as a kid drooled over the Remington catalog. That said, Remington died when the Freedom Group took over. They also killed Marlin and H&R/NEF. Thank goodness we still have Ruger, Henry, Kimber and millions of great, old used guns.

[Petrol & Powder]

It's important to note that Remington had enormous debt before Cerberus Capital Management acquired them in 2007.

Remington was the defendant in multiple lawsuits, some they deserved and some they didn't. They acquired Marlin and several other manufacturers but their debt only increased. They attempted to reduce their production costs by re-locating to less expensive labor markets but that was too late. Their quality plummeted along with their sales volume.

I don't think Remington is the victim of corporate raiding as much as they as they were a victim of their own mismanagement.
If Cerberus wanted Remington for its cash, they would have dumped Remington back when Remington still had some cash.

Bankruptcy isn't necessarily the end of Remington, some companies restructure and survive. Time will tell. They do have some assets and name recognition. In the end, they will make it or not but if there is a demand for a product, someone will step in and produce it.

American Motors, Studebaker, Packard, Hudson are all gone but we still have automobile manufacturers.

[.429&H110]

A couple decades ago I moved to Alaska
and had no idea which end the bullet came out.
All I know is what I read here.
And I thank you.
Walmart (Fairbanks) had a Rem 700 .223
nylon stock for $199. Weighs 2.3 pounds.
Iron sights. I can shoot clays on the burm at 100 yards.
Can get them at 200 yards, but I am getting old.
Glass trigger but
On safe, pull the trigger three times
bang the butt on the ground
Take off the safety, will likely drop the pin.
Bang
New trigger? No! just don't bang it.
Love the trigger but
what were they thinking?
I keep the rifle for safety lessons
it won't shoot, bolt open...
only safety is between your ears.
Besides, the gun is worthless
without a new trigger.
Works for me...
(My daughter will put in a new trigger
when she inherits it.)

Was next to a guy at the cushman range
he couldn't get his thing to cycle
cursing jamming cold getting dark
He says "Do you shoot 223?"
Yup. "You can have these!"
Gave me a big box of Wolf
in a box full of snow
frozen solid. Won't cycle?
I couldn't get them apart.
Dried them, the shellac swelled
and the Rem 700 just peels it off.
Makes a mess though.
Fun gun. More accurate than I am.
Had a rough bore, but the Wolf helped.
Remington got the reward they earned.

Thanks for the forum!

[Ozark mike]

Remington is a crap brand anymore but a history icon that should have been steadied by people who loved what they once was instead of ran through the mud and hung out to dry by bean counters kinda like what happened to international harvester, packard, evinrude and many others sad to see em go

[bedbugbilly]

Too bad but not unexpected. An old and well established company that at one time put out quality firearms . . . . funny how the technology of machining . . . CNC, etc. advanced precision but somehow instead increasing quality, it dropped. Bean counters get involved . . . "build 'em cheaper" but get a higher profit margin . . . . "creative accounting" to follow the completely overdone, confusing and loop-hole tax code that our Congress has created over the years . . . remember the promise by certain Congress members that they would re-write the tax code and our personal tax forms would be the size of a postcard? Yea . . right . . . . One has to wonder the actual make-up of the corporate structure of Remington . . . . how many overpaid upper white collar workers . . how many "corporate benefits" and "bonuses" . . . . all draining the cash assets of the company.

It's strange that Remington, Marlin, Colt, etc. have all had financial issues but Ruger . . . which I mean no disrespect when I say this . . . Tuger . . . which builds good working man/woman guns that function and last . . . yea . . . they have gone to the tupperware of the this time . . . they offer excellent customer service, etc. . . . and Henry . . . "Made u Anerica" . . . .which produces well built firearms that actually reminds you of the quality that Remington used to make . . . beautiful wood stocks, good fit and finish . . . excellent customer service, etc. . . . . how is it that they still are able to survive? Do you think they might be "doing something right"?

Unfortunately, if the Left Socialist Party of Democrats get isn office, one of their agendas is to dow away with the firearms industry in this country and they will make it a priority. Of course Americans will be put out of work if they do . . just like those in the fossil fuel industries as well as other industries that create jobs for Americans. Renenber that as well as the possible loss of Remington, Colt, etc. the next time you hear Pelosi say, "We are the only party that cares about the American citizens" . . . . .

[pietro]

.

Although the Remington division where the stocks were made have already laid off over 60 workers in MO, , Remington is scheduled to close the Rockingham (Madison) NC facility on Sept 29, laying off over 800 more workers there.

https://www.wxii12.com/article/remington-arms-closing-rockingham-plant-laying-off-workers/33548954#

https://www.wfmynews2.com/article/news/local/remington-arms-company-files-for-bankruptcy-terminating-870-positions-from-madison-facility/83-84d10b63-ba34-4bf1-a42b-090f6685eaf8

.

[elmacgyver0]

This is Nothing New In the US Corporate business strategy . When I was working In corporate America, the main trick is to completely Run @ a loss but Yet show a Paperless profit. All major companies learn very quickly to expense all the profit or pay tax on it. This is a loop hole in the tax system for corporate america. Buy new Company Cars, Boats, and other perks to expend the cash rather that pay uncle sam. This is all legal . In simple terms, The guy driving around In his company truck, or leasing one having his company paying For it
This has been going on for years and nothing going to be done about
So the next time you see Your Construction pal driving his truck all Over , yes he screwing the government as well. so it's not only big Companies

So trying to keep a little more of your own money that you worked to own is screwing the government?
The loop holes that are in place that allow this screwing were put in place by the politicians to screw tax payers in the first place.

[1hole]

For the last 60-70 years the biggest obstacle big American business has faced is big American management. Every since big outfits started turning management over to university trained "Masters of Business Administration" (MBA) every big company I know of has fallen on hard times and most haven't survived and most of them due to a reduction in the quality of their products; I think there's a message to be found somewhere in that and you don't have to be a vastly overpaid MBA to find it!

Blaming the Chinese for the business impact of illogical errors of American management AND our deceptive Federal tax codes AND excessive government regulations AND the general reduction of the American work ethic is as silly as blaming Trump for Covid 19 ... but it still happens.

[ioon44]

Perhaps Trump will bail them out, after all, past a president has done similar.

Slim


Now that would make Lib heads explode, Go for it.

[Petrol & Powder]

Lawsuits cost money even when you prevail in the end.

Higher minimum wages result in companies either employing fewer people or passing that expense onto their customers.

Government regulations increase manufacturing costs, those costs get passed onto the customers.

When the government taxes a company the COMPANY doesn't pay those increased taxes - their CUSTOMERS do.
Companies don't pay taxes, companies COLLECT taxes. Consumers pay those taxes.

Remington moved their manufacturing to markets with lower labor costs but it was too late. Remington had a lot of debt and was banking on their name more than fixing their business. Remington had some mismanagement but they also had some tough competition. Between the lawsuits, high labor costs, increased acquisitions and increased competition - Remington was in trouble long before Cerberus acquired them. That ship had been sinking for some time.

Eastman Kodak was once a powerhouse in the world of photography. Between film sales and film developing, they had over 90% of the market. When digital photography came along, they declined to embrace it, instead they banked on their domination of the market. They blew it.
Like Kodak, Remington held a huge market share but they banked on their name to remain competitive. Some of that is mismanagement and some of that is just shear arrogance.