May 21st, 2020

Gunwerks Sued by Wells Fargo to Collect on $2.8 Million Loan

gunwerks llc wyoming wells fargo lawsuit

Wyoming-based Gunwerks LLC is a highly visible producer of high-grade rifles, modern optics, and rifle accessories. Gunwerks had its own television show and operated upscale long-range shooting clinics and guided hunts. Now the company may be in tough financial straights.

K2radio.com reports that: “Wells Fargo Bank has sued the Cody-based custom-rifle maker Gunwerks, LLC, for $2.8 million for unpaid loans and wants the company’s equipment, according to federal court records filed Wednesday. Gunwerks … also owes $1 million to creditors and and for unpaid sales taxes, according to the complaint by the bank and Wells Fargo Equipment Finance, Inc., through its attorneys[.]”

For full details, we recommend you read the full 5/20/2020 news story from Wyoming Radio Station KTWO (K2) in Casper, Wyoming. That report provides extensive details of the legal claims by Wells Fargo. The lawsuit was filed in U.S. District Court for the District of Wyoming. View Court Documents HERE.

Wells Fargo’s complaint alleges that Gunwerks owes the bank roughly $2.8 Million. Wells Fargo further alleges that a Gunwerks financial report reveals that Gunwerks owes approximately $622,000 in creditors’ bills. The complaint also alleges Gunwerks owes $365,000 in unpaid state sales taxes.

gunwerks llc wyoming wells fargo lawsuit

Wells Fargo’s Motion for a Receiver states the loan amount owed is $2,783,757.82, with interest accumulating at more than $20,000 a month.

Wells Fargo is seeking to recover and secure inventory and other Gunwerks property used as collateral for the bank’s loans. The complaint filed in Federal Court alleges: “These circumstances require the immediate appointment of a receiver to recover, salvage, and retain the value of the Collateral.”

Wells Fargo has alleged that Gunwerks has already sold part of the collateral inventory and deposited the proceeds in different banks: “The Borrower has taken control of Wells Fargo’s collateral, refuses to disclose the names and addresses of account obligors for accounts that constitute collateral for Wells Fargo and has removed and refused to remit proceeds of Wells Fargo’s collateral to prevent such collateral from being applied to the Borrower’s loans[.]”

Gunwerks has not made a public statement about the situation: “What all this means for the company’s future and its employees is unknown. A Gunwerks’ spokesman did not return calls seeking comment.” (Source KTWO Report.)

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May 18th, 2018

Remington Emerges From Chapter 11 Bankruptcy

Remington emerges Chapter 11 Bankruptcy debt shares restructuring

Good news for fans of Big Green — Remington remains a going concern…

On 5/17/2018, Remington Outdoor Company (“Remington”) announced that it has emerged from Chapter 11 after successfully implementing the reorganization plan recently approved by the Delaware Bankruptcy Court. Basically, the bankruptcy proceeding has converted debt into equity allowing Remington to move forward with significantly reduced debt load and associated interest costs.

“The Plan provides a comprehensive balance sheet restructuring of the Company and converts over $775 million of the Company’s debt into equity,” stated the Remington press release.

“In addition, the Plan provides the Company with a new Asset Based Loan (“ABL”) facility of $193 million, the proceeds of which will refinance its prior ABL facility in full, a new $55 million First-In, Last-Out Term Loan and a new $100 million Term Loan.” The Plan received support from over 97% of the voting Term Loan Lenders and all of the voting Third Lien Noteholders.

“It is morning in Remington country,” said Anthony Acitelli, Chief Executive Officer of Remington. Mr. Acitelli continued, “We are excited about the future — producing quality products, serving our customers, and providing good jobs for our employees.”

Old Shared Cancelled, New Shares Issued to Previous Lenders
The bankruptcy essentially extinguished old Remington stock shares and replaced them with new shares: “As provided in the Plan, all shares of Remington’s common stock issued prior to the commencement of Remington’s bankruptcy proceeding were cancelled upon emergence, and Remington has issued new shares of common stock and, in some cases, warrants, to the holders of its previously outstanding funded debt in return for their allowed claims against Remington.”

Remington Has a Storied History
Founded in 1816 by Eliphalet Remington in New York, Remington is the oldest continuously-operating gun manufacturer in the United States. Even with its present difficulties, Remington still sells more sporting rifles and shotguns than any other American company. Remington has developed more cartridges than any other U.S. company. And it is the only American company that sells firearms AND ammunition under its own name.

Permalink Bullets, Brass, Ammo, News No Comments »
February 13th, 2018

Remington Pursues Bankruptcy to Reduce Massive Debt

Remington Outdoor Company files Chapter 11 Bankruptcy Cerberus Equity J.P. Morgan

Remington Outdoor Company Inc. (Remington) will file for Bankruptcy in the Delaware Federal Court. The North Carolina-based company is pursuing Chapter 11 Bankruptcy to reduce its $950,000,000 in debt. According to Reuters, Remington hopes to work out an agreement with its creditors to write off about $700 million in debt obligations. That would permit Remington to sustain manufacturing operations and retain most of its work-force. In announcing the Bankruptcy filing, Remington executives stated that the company will continue to operate as usual during the bankruptcy proceedings.

(Reuters) – Remington Outdoor Company Inc., one of the largest U.S. makers of firearms, said on Monday it had reached a deal with its creditors to file for Chapter 11 bankruptcy to slash its $950 million debtload. Remington said it will receive $145 million in bankruptcy financing to fund the company through the Chapter 11 process.

Cerberus Will Yield Control of Remington to Creditors
If the pending deal with creditors goes through as planned, Cerberus, the private equity group that currently controls Remington, will lose ownership of the company. Through the bankruptcy, according to Reuters: “the company’s creditors, which include Franklin Templeton Investments and J.P. Morgan Asset Management, will exchange their debt holdings for equity in the company.”

Two months ago, AccurateShooter.com noted that Remington was considering Bankruptcy. Our report noted that an earnings decline left Remington few options. In early December, Fox News reported: ““The rifle and shotgun manufacturer’s third-quarter sales plunged 41% as demand for firearms dried up. That led Remington to report adjusted earnings before interest, taxes, depreciation, and amortization that were 78% lower year over year. Over the first nine months of 2017, the company has produced a $60.5 million net loss, compared to a $19.1 million gain in the prior-year period. And with its credit rating in the trash bin, the future is bleak for ‘America’s oldest gunmaker’. Today, debt on the company’s books has ballooned to almost $1 billion[.]”

Remington Has a Storied History
Founded in 1816 by Eliphalet Remington in New York, Remington is the oldest continuously-operating gun manufacturer in the United States. Even with its present difficulties, Remington still sells more sporting rifles and shotguns than any other American company. Remington has developed more cartridges than any other U.S. company. And it is the only American company that sells firearms AND ammunition under its own name.

Permalink Hunting/Varminting, News 13 Comments »
December 9th, 2017

Remington May Face Bankruptcy Reports Fox News

Remington Fox News Bankruptcy credit rating sales declines

There are tough times ahead for Remington. Fox News reports that: “Privately-held Remington Outdoor is now at risk of declaring bankruptcy after a collapse in sales and profits. Saddled with debt, the historic gun manufacturer is short on avenues for escape.” (LINK). Fox News adds:

“The rifle and shotgun manufacturer’s third-quarter sales plunged 41% as demand for firearms dried up. That led Remington to report adjusted earnings before interest, taxes, depreciation, and amortization that were 78% lower year over year. Over the first nine months of 2017, the company has produced a $60.5 million net loss, compared to a $19.1 million gain in the prior-year period.

And with its credit rating in the trash bin, the future is bleak for ‘America’s oldest gunmaker’. Today, debt on the company’s books has ballooned to almost $1 billion[.]”

Read Full Remington Report on FoxBusiness.com »

Financial analysts report that Remington’s earnings decline will further harm the company’s already poor corporate credit rating. That means Remington must pay even higher interest rates to borrow money, further bleeding cash and decreasing profitability. This, in turn, accelerates the momentum towards filing bankruptcy. Fox explains: “With the firearms and ammunition manufacturer burning through cash as a result of falling sales, S&P expects it will undertake a restructuring within the next year.”

Other large American gun industry companies have seen their stock value drop dramatically this year. Vista Outdoor (Savage, RCBS, CCI etc.) is down 62% since December 9, 2016, while American Outdoor Brands (Smith & Wesson) has dropped 36%.

Remington Has a Storied History
Founded in 1816, Remington is the oldest continuously-operating gun manufacturer in the United States, and remains one of the USA’s oldest commercial enterprises. Even with its present difficulties, Remington still sells more sporting rifles and shotguns than any other American company. Remington has developed more cartridges than any other U.S. company. And it is the only American company that sells firearms AND ammunition under its own name.

Remington Fox News Bankruptcy credit rating sales declines

The Remington enterprise was founded in 1816 by Eliphalet Remington in Ilion, New York, as E. Remington and Sons. In 2016 Remington celebrated 200 years of history. American Rifleman TV explored the history of Remington Arms Company in a TV special which focuses on many of the company’s most noted firearms. Here is a preview:

Permalink Gunsmithing, News 25 Comments »
March 14th, 2017

Gander Mountain Files for Chapter 11 As Prelude to Sale

Gander Mountain Company bankruptcy business sale

Want to go into retail? Here’s your chance! Gander Mountain Company (GMC) is going on the auction blocks. To facilitate a “going-concern sale” of the business, GMC has filed bankruptcy petitions in the U.S. Bankruptcy Court for the District of Minnesota. Gander Mountain plans to put the business up for sale, and will solicit bids prior to an auction in late April 2017. The company expects to submit the winning bid to the Bankruptcy Court for approval in early May and anticipates a closing of the sale by May 15, 2017.

As part of GMC’s reorganization, it plans to shut down 32 Gander Mountain retail stores. (SEE Locations). More info about Gander Mountain’s restructuring is available at Donlinerecano.com/gmc. Court filings and claims information are available at the U.S. Bankruptcy Court website, www.mnb.uscourts.gov.

Here are highlights from Gander Mountain’s official statement about the Bankruptcy:

Gander Mountain [states that], to maximize the opportunity to achieve a “going-concern” sale of its business, it and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.

This action is the result of an in-depth review of the company’s strategic options undertaken in recent months to preserve the value of the company and position it for long-term success. Like many retailers, Gander Mountain experienced challenging traffic patterns and shifts in consumer demand resulting from increased direct-to-customer sales by key vendors and accelerated growth of e-commerce.

The company’s strategic review yielded the following conclusions:

  • A narrowly focused and lower cost operating model is necessary to position the company for profitable growth;
  • The company does not have the financial capacity or time to reset its operations to fully implement the new model and, as a result;
  • The best available path forward is to sell the company on a going-concern basis.

The court’s protections will enable us to manage the sale process on an expedited basis while protecting the interests of our customers, employees and other stakeholders. Gander Mountain is in active discussions with a number of parties interested in a going-concern sale and expects to solicit bids prior to an auction … in late April 2017. The company expects to submit the winning bid to the Court for approval in early May and anticipates a closing of the sale by May 15.

The company generally expects to conduct normal business operations during the pendency of its restructuring. Employee pay will continue to arrive on time and in full, employee benefits will remain in place, retirement accounts are intact and protected. As a product of the company’s strategic review, 32 underperforming retail locations will begin a shutdown process in the next several weeks.

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June 15th, 2015

Colt Files for Chapter 11 Bankruptcy

Colt Defense LLC Manufacturing Company Bankrupt Bankruptcy Ch 11 Chapter File Wall Street Journal Bond Liquidation

On Sunday, June 14, 2015, firearms manufacturer Colt Defense LLC and its subsidiaries (“Colt”) filed for Chapter 11 bankruptcy, with the goal of selling the enterprise. Colt had been strained by a heavy $355 million debt burden, and had previously warned that it might resort to bankruptcy if it could not reach an agreement with bond-holders. In a Sunday news release, Keith Maib, Colt’s chief restructuring officer stated: “The plan we are announcing and have filed today will allow Colt to restructure its balance sheet while meeting all of its obligations to customers, vendors, suppliers and employees and providing for maximum continuity in the company’s current and future business operations.” Read full Press Release.

According to Marketwatch, Colt hopes to have new owners by the end of the summer: “Colt is racing to get to the auction block by August 3, with an opening buyout offer from Sciens Capital Management LLC, Colt’s private-equity backer.” There are actually ten separate but related business entities under the Colt umbrella that collectively filed for backruptcy. These are listed in the Bankruptcy Filing Summary, In re Colt Holding Company LLC, Case Number: 15-11296.

(more…)

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September 6th, 2010

Defunct Lock, Stock & Barrel Sells Customer List to MidwayUSA

lock, stock, and barrelLock, Stock, & Barrel (LS&B), a family-run vendor of ammunition, reloading supplies, and shooting accessories, has gone out of business. We’ve been informed that the Nebraska-based business filed for bankruptcy and that the doors are shut for good.

We’re sad to see any business failure in our industry. Lockstock.com often had attractive specials, particularly on optics. But, ultimately, they couldn’t compete with the larger online retailers, such as Midsouth Shooters Supply, Graf & Sons, and MidwayUSA.

LS&B Customer List To Be Sold to MidwayUSA — Opt-Out Procedure
The remaining inventory and assets of LS&B are being sold off. As part of that process, LS&B is selling its customer list to MidwayUSA. LS&B recently sent out this email notice to its past customers: “[LS&B] ceased doing business and intends to sell its inventory and customer list, including personally identifiable nformation (‘PII’), consisting of your name, address, phone number and e-mail address (no credit card, banking, or other personal or financial information) to Midway Arms, Inc., dba MidwayUSA[.]”

If you are a past Lock, Stock, & Barrel customer and you do NOT want your information shared with MidwayUSA, please follow the “opt-out” instructions in the recent email, or send a request to be removed from the mailing list to: optoutlockstock@gmail.com .

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March 24th, 2009

Sportsman's Warehouse Files for Chapter 11 Bankruptcy

The Sportsman’s Warehouse chain of outdoor stores filed for Chapter 11 bankruptcy this past weekend. In papers filed with the U.S. Bankruptcy Court in Wilmington, Delaware, Sportman’s Warehouse declared assets of $436.3 million versus outstanding debt of $452.3 million. Under Chapter 11, a company is protected from creditor lawsuits while it works out a plan to repay its debts during reorganization.

Sportsman's Warehouse

Sportsman’s Warehouse currently operates 29 stores, including four stores in its home state of Utah. “Sportsman’s Warehouse is another retailer victim of the worldwide global recession,” Rourk Kemp, the company’s chief financial officer (CFO), stated in Bankruptcy Court papers. Last year, Sportsman’s Warehouse announced a deal to sell 80% of its operations to a Canadian agricultural cooperative. However, that deal basically fell through, precipitating this Chapter 11 filing.

Stores to Remain Open During Reorganization
Sportsman’s Warehouse does not plan to liquidate or go out of business entirely. According to CFO Kemp, Sportsman’s Warehouse intends to continue its normal business. It will keep its remaining 29 stores open, having already closed 23 stores and sold 15 others. It will also continue to pay employees’ wages and benefits and honor customer service policies, such as returns, exchanges, credits and gift-cards.

New Financing Source
To help pay the bills during reorganization, Sportsmans’ Warehouse announced it has secured, from G.E. Capital Corp., $85 million in financing. These funds will be available to the company while it is under the Chapter 11 protection.

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