Remington May Face Bankruptcy Reports Fox News
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.
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:
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Tags: Bankruptcy, Fox News, Remington, Remington Outdoor, Smith Wesson, Stock Market, Vista Outdoor
Golly. How surprising and unexpected.
How’s living in the NOW working. I can get an average person getting caught up in today, but a huge corporation? Very short sighted. — Brian.
Glad to hear it!! Today is 2 years since we laid our sweet boy to rest due to decades of lies and deceit covering up the issues with the walker trigger. Dec 3 2015 our sons life was taken by A bullet that misfired as a rifle was being unloaded. Remington decided our safety wasn’t worth 56 more cents and because of them we had to bury our 16 year old. Looks like that change didn’t make much of a difference for them in the long run unfortunately many families can not say the same.
Why was the gun pointed at him as it was being unloaded. Sounds like human error to me.
With the fear of Obama’s actions on gun control we had 3 major over buying surges that sold too much volume now we are at a low sales point. Now most New home defenders and new CCL have all their guns for a while. We are over built with AR & Tactical weapons but crime will keep this type on steady sales but we have too many manufactures. Hunting firearms will continue a decline. Remington may go away like Winchester. Will discuss more later.
A loaded gun should never be pointed at someone. That was the problem.
Probably a case study to be made here on how to not run a company.
Repeated examples of dropping the ball through the years;
244 Rem being superior to the .243 but you twist it wrong and screw that up
Coming out with the 6br and letting it fall by the wayside
Maker of some of the better benchrest bullets out there at one time and discontinuing them
Having one of the best repeating .22s in the 40x repeater and placing it out of reach of consumers giving that market to Anschutz
Blundering any attempt to get into the long range market and custom rifle market even though 85% of what’s out there is a clone of your action
You could have shut down the creedmore craze or at least challenged it with the 260, you’re a gun and ammo manufacturer, that market could have been yours
You have 2 of the best and longest running shotgun models with the 870 and 1100 but you steadily pump out plastic coated barreled pieces of crap that look like they would come from an indoor flea market.
This list could go on for pages…
Who is making the decisions there and why.
Bankruptcy? Fake news.
I’m sure there are plenty of executives that will not suffer from the collapse/reorganization of Remington.
Lonny pretty much nailed it.
Re-introducing the Remington 51 and changing it enough to completely ruin the design, twice.
I personally wore out 3 chamber hone bottle brushes fixing customers brand new 870 chambers.
6.5 Creedmore would not exist if Remington just put even a modest effort into marketing the .260 Rem.
It’s a shame no one even cares about little things they got right like the RM380. Great little pocket gun for 1/4 the price you could buy it at before, and it’s better. Oh well. Perhaps this bankruptcy will get them on the correct path.
Everything Lonny said but I’ll add to that list. Allowing quality control to slip for years… Remington, when was the last time you checked your No Go head space gauges? Every new rifle I have check will close on a no go. When will you address bolt timeing/primary extraction. You designed your 700 actions with that feature but your tolerances are so relaxed that the feature doesn’t have a hope of engaging. Who wants an off center recoil lug that is so miss aligned that it contacts one side of the stock? Who is in charge of deburring the actions, high school shop classes can turn out products with fewer burrs. Groves cut into the chamber walls of belted magnums that are so deep they will form a near mechanical lock… where is that primary extraction feature again? Triggers??? you out source stocks, why not triggers?
This is shocking and very unexpected
When the “Lite” rifle craze hit Remington decided to shorten the 788 to “Carbine” BUT it was a heavier BBL and Clumsy stock-it weighed more that the Original 788.
The 504 decided a 14″ twist was better made on obsolete equipment.
Discontinued the 580-581-541 series.
Lets not 4 get the XR 100 the BEST Factory varmint rifle on the market at the time
Bean Counters ruined Remington
Nuff Said
Same old story. Financial mismanagement. Hot shot execs think taking on massive debt is savvy. At least they get fat bonuses in the short term. No. Debt is stupid. As has been since Proverbs was written 3,000 years ago. Try owing on your credit cards twice what you make in a year. Tell us how that works out for ya.
I can only hope some current Remington executives will come across, read and share blogs and comments like these. Your core products, the models that have endured decades, are the bread and butter of the shooting community. Who can honestly criticize an item like a Remington M-700 Police .308, selling for under $1,000.00? In college, I could still afford a new BDL .30-06,a truly marvelous purchase at that time, just as the 40-X’s later. There is no excuse for being debt laden in this golden age of gun enthusiasm. Perhaps current upper management types should evaluate their own contribution to the company with an open mind to resignation. Don’t overlook the fact your generation of management inherited strong staple products. The real work was done. All you had to do, truly, was not fall asleep on the yoke and force the plane into a nosedive. If Remington fails, please FNH, once again buy up American tooling, build their products, and place their management on a permanent no rehire list. From the .22 Fieldmaster to the model 40-XS, I have valued scores of these fine products, as have my kids, as I hope someday they too can say when they are adults.
Yeah if they would cut it out with the ridiculously inflated prices they may sell more guns? I know it doesn’t cost 125% more to manufacture a 700 BDL than it did in 1998, but that is what the current prices reflect. Used to buy them for $420 brand new but now who has $900-$1,000 to spend on a rifle? Not the average American. What they had worked back then too, but they tried to change their triggers and ended with recalls and lawsuits and that is never good for business no one wants to buy an unsafe rifle. Their quality really went down hill after they were bought out and took on Marlin too. They need to bring back the classic 700 BDL at a reasonable price.
Take a look at Marlin, and how they destroyed them, and their own reputation! Every gun shop in north America got marlin 45-70 lever guns that were so bad, they wouldn’t even fire!
Marching in on marlin and telling the wise old gunsmiths to take a pay cut or walk, well I am so glad they had the guts to walk! And then the hackers remaining built junk.
Our local gun shop sold a rem 700 in 25-06 to a guy. He came back a week later to say that it shot terrible.
Couldn’t hit paper at 50 yards. Bullets making keyholes. Shop owner looked down the barrel. NO RIFLING!
A 257 smoothbore. To make it worse, they sent it back after it was sent to Remington, saying, its just fine what are you whining about.
the western north America rep finally got things right, but Personally, I would not touch a Remington, made after about 1995, if somebody gave it to me.
Not to mention triggers. That’s a whole nother bag of snakes.
where is remington’s Modern Sport Rifle?
where is quality of their rifles?
there where the stock is…
bankruptcy is good if someone will try to do things right way in the future.
and this means more competition and I hope better deals for us…
Let’s not forget the Remington 597 Magnum 17 HMR fiasco. I purchased one and tricked it out. Then there was a recall and Remington offered me $200 credit from my next purchase of a Remington product if I would return the 597 to Remington. I think I paid around $350 for the rifle, and they offered me a $200 credit for it! Such arrogance! I will never buy another Remington product! Long live Savage Arms!
I hope Remington stays American.
As a kid I hunted with a Remington 1100.
As a Swat Cop I used a 700- 308, and an 870 shotgun.
Today the Military is looking for a 6.2mm AR15 Cartridge pushing the 115gr 6.2mm bullet at
2900fps. This would out perform the 308 cartridge with 1/2 the recoil and weight.
Remington has an opportunity to shine but they have to listen to what Americans want.
The Military, Law Enforcement, Hunters, PRS Competitors, Benchrest shooters all want this 1000 yard AR15 Cartridge. Why do we keep fooling with the 5.56 when it is history? The same
for the 7.62×51 (308).
This new Cartridge will require an AR made specifically for this new Cartridge. Remington could make them both!
Stop making Pistol’s that Americans don’t want!
Listen to Americans that want you to succeed.
Last point, bring back the quality to the firearms that you will continue to manufacture. I have a 700 308 twenty years old. It used to shoot 1/2 MOA. Today with hundreds of rounds through it,
it will still shoot1MOA. I have a new Remington 700 it will not shoot a 1″ group with any kind of ammo! Fix the quality problem!
Good luck and God bless.
They lost me when they dropped the Nylon 66!
The Ammunition plant in Lonoke has went to waste from poor management.. All they want is numbers.. Quantity before quality.. Sad don’t care what there sending to the warehouse long as they have there numbers for the week month day…It was only A matter of time before the sh** hit the fan.. Treats the workers like prisoners.. Quality is not checked it’s sent straight out the door to the stores selfish just worried about there profit not caring about the customers…. Sad..
I have seen 700 series rifles come into the store without a hint of rifling in the barrels, binding actions, sights missing or fallen off in the box (should be soldered or brazed). 870s rusted and actions were as hard to shuck as stirring cement with a shovel (sounded the same too). Gaps between the trigger group and receiver large enough to slip a quarter into.
I mentioned this to the rep. When the rep got back to us he said “sell em’ as is and we will deal with the warranty issues as people send them in”. The idea that some folks might not send them in for repair.
I like the idea of 80% firearm kits but I don’t want to spend the same as a completed firearm for them.
After their bailout I hope they hire gun savvy people.
Poor execution of a poor design cannot be accepted as a business practice.
The hourly always show up for work and do their job and it’s always the management that gets them in trouble.
The left did this thru the courts as they want to take charge of that industry as well as medical and lately, education.