Remington emerges from bankruptcy

Ikarus1

Ikarus1

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This made me smile the other day....and I forgot to share it

http://www.guns.com/2018/05/17/remington-emerges-from-bankruptcy-clears-775-million-debt/


A majority of shareholders approved Remington Outdoor Company’s plan for reorganization, lifting the gun maker out of bankruptcy court, the company announced Thursday.

The plan will convert $775 million of debt into equity as the Remington was turned over to its creditors and the company will emerge from the process with $193 million in financing along with at least $155 million more available in loans.

“It is morning in Remington country,” said Anthony Acitelli, Remington’s chief executive officer, in the statement. “We are excited about the future – producing quality products, serving our customers, and providing good jobs for our employees.”

The North Carolina gun maker, made up of more than a dozen brands, filed for chapter 11 protections in March hoping to restructure nearly $1 billion in debt.
 
They need to do some deep soul searching as to why they wound up in this place to start with. Then they need to change their ways. Their executive management should get compensation for success, not for participation.
 
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Im glad...because of the jobs saved and the potential to revive the quality that built the name. Probably wont happen, but theres a chance.
Im meh because Remington products havent 'wow'd me in years. I have two Remmy 1100's (12 & 16 ga), a 742 Woodsmaster in 30-06, and a 700 in 30-06. All from the early '80's. Thanks pawpaw!!!
I figure that's about all the Remmy I need in my life. If I cant kill it with those, I reckon I don't need to be tryin.
 
draco88 said:
Im glad...because of the jobs saved and the potential to revive the quality that built the name. Probably wont happen, but theres a chance.
Im meh because Remington products havent 'wow'd me in years. I have two Remmy 1100's (12 & 16 ga), a 742 Woodsmaster in 30-06, and a 700 in 30-06. All from the early '80's. Thanks pawpaw!!!
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Absolutely, get back to building good guns, not guns that will sell well at big box stores. They had a brand conflict that they dealt with very poorly. They took their cornerstone products that had gotten more and more expensive and cost reduced/modified them to make the competitive with lesser weapons, and then they added a bunch of different versions, reducing the models of their original core product lines. Result, poorer quality, a lesser reputation for quality, and brand dilution.

They need some shooters on the executive team there. They haven't had that in this century.

But it could have been worse on the creditors 1 billion in debt settled for 77.5 cents on the dollar is a pretty good deal for them compared to other options.
 
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Charlie R said:
Absolutely, get back to building good guns
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This.
The ones I have may not have been top of Remmys line....or top of anyones line.
But, they were/are good, solid, reliable working guns yhat have put a lot of meat in the pot ofer the years.
To me, the working gun was always the company's backbone. They don't need a homerun from tbe most fancy precision rifle or a wonder 9.
They need singles and doubles from solid performers to win this game.
 
noway2 said:
They need to do some deep soul searching as to why they wound up in this place to start with. Then they need to change their ways. Their executive management should get compensation for success, not for participation.
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Please stop buying out quality gun manufacturers and then crapping on them.
 
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Mightyox04 said:
Please stop buying out quality gun manufacturers and then crapping on them.
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Reminds me of the car brand Volvo. They weren’t sexy, if anything they were geeky, but they were a tank that was safe, of good quality and lasted a long time.

Ford bought them and made them “cheaper”, claiming the quality wouldn’t diminish. They lied.
 
noway2 said:
They need to do some deep soul searching as to why they wound up in this place to start with. Then they need to change their ways. Their executive management should get compensation for success, not for participation.
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They wound up like is because of Cerberus. This group did the same thing famously to Chrysler and many other companies. And oddly they do it on purpose to make tons of money. I'm not an expert so can't go into the details, but a finance buddy in NYC had previously explained how it works. Don't understand how purposely running companies into the ground and still getting rich isn't regulated.
 
noway2 said:
They need to do some deep soul searching as to why they wound up in this place to start with. Then they need to change their ways. Their executive management should get compensation for success, not for participation.
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Cerberus took them private, went on a buying spree, (not their money) and could not flip it quick enough.
 
draco88 said:
Im glad...because of the jobs saved and the potential to revive the quality that built the name. Probably wont happen, but theres a chance.
Im meh because Remington products havent 'wow'd me in years. I have two Remmy 1100's (12 & 16 ga), a 742 Woodsmaster in 30-06, and a 700 in 30-06. All from the early '80's. Thanks pawpaw!!!
I figure that's about all the Remmy I need in my life. If I cant kill it with those, I reckon I don't need to be tryin.
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You need a Model 760 in 30-06 to round out the set. :D

Windini said:
I want this in my life: convert debt into equity. What's the method for that? I'll call Citibank and tell them to begin the process.
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I believe the debt to equity conversion happens when the debtee becomes owner. The debt is now the investment and therefore equity in the company.
So, in your example, Citibank would own you.
 
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I was really hoping they’d have to divest their interest in most of the subsidiaries. Marlin deserves better than Cerberus control. H&R 1871 should still be making the Handi and Topper and not just importing Chicom crap. My opinion was that Remington needed to cut back to just what works; The 700, 870, 1100, and a .22 rifle. When you prove you can make those well, you can go back to all the different choices.
 
This is what happens sometimes when a private investor buys a broke and dying public company. Cerberus paid about $120M in cash (and assumed outstanding debt) for Remington when nobody else wanted it. Ideally, Cerberus would have restructured the company, made it profitable, and sold it for a tidy profit. Things didn't quite work out, so Cerberus ends up handing the company over to its lenders. But don't feel too sorry for Cerberus - some of the nearly $600M in additional debt that Cerberus piled on Remington undoubtedly went to pay "management fees" to help Cerberus to recover its original investment.
 
Remington just like bad banks should not be allowed to resurface after failure. Get Walmart to bail you out Remington. You sold your soul to them.
 
I for one am happy to see them pull out of bankruptcy, but as slow as the gun market is right now it's still not going to be an easy path. I think some of the early posts had the answer:
Charlie R said:
Absolutely, get back to building good guns, not guns that will sell well at big box stores.
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This^. Rem needs to strip down to the core essentials that made the company what it once was. Quit trying to sell volume crap in the big box stores. No one wins a race to the bottom, including the consumer. There will always be some idiot willing to sell cheaper stuff thinking they are building market share and and wind up in a contest to see who can go out of business quicker. Don't take that bait. Instead focus on quality products made in the USA. No gimmicks, no cut corners, no glitz. It will take some time, but I think it is doable if their investors have the patience to see it through. If they (the investors) are just looking for the quick buck, forget it.
 
I haven't owned a Remington in over 20 years. The old timers I grew up with always called them "poop" guns. They said go to any pawn shop and it will be full of Remington's. There would be ten Remington's for every Browning or Winchester. Both brands, even beat up, would fetch a higher price than a nearly new "poop" Remington. Whether it was true or not I always remember them saying it.
 
Downeast said:
I haven't owned a Remington in over 20 years. The old timers I grew up with always called them "poop" guns. They said go to any pawn shop and it will be full of Remington's. There would be ten Remington's for every Browning or Winchester. Both brands, even beat up, would fetch a higher price than a nearly new "poop" Remington. Whether it was true or not I always remember them saying it.
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Quality made Winchester's are now collectors items for the most part, and Browning is a premium brand. Older quality made guns are going to appreciate in value, even run of the mill Rem 1100s and Wingmasters are fetching good prices. I would like to see Remington recover for the sake of the gun community but to do that, big changes will need to happen.
 
Remington was for many years the working man's firearm. M700's and 1100's rule the day. But today Ruger and Savage have cornered that market. I will give Remington credit that they made some fine looking firearms while Ruger and Savage were always butt ugly.
 
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