Judge to Rule on Remington Bankruptcy Sale

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posted on September 28, 2020
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If the United States Bankruptcy Court of the Northern District of Alabama approves documents submitted on Sunday, Sept. 27, Remington Outdoor will not escape its latest bankruptcy filing intact.

As presented to the court, Ruger would take over Marlin firearms, Vista Outdoor gets Lonoke ammunition, and Sierra Bullets gets control of Barnes. In addition, Bushmaster goes to Franklin Armory Holdings, DPMS, H&R, AAC, and Parker all would become part of JJE Capital Holdings—owner of Palmetto State Armory—and the nation’s oldest gunmaker, Remington Arms, transfers to Roundhill Group.

The moves include all assets, both intellectual and physical, including manufacturing facilities, trademarks and patents. The sale starkly contrasts the bankruptcy protection Remington Outdoor filed in 2018, in which it emerged in two months after shedding $775 million in debt without sacrificing any properties.

Vista Outdoor Chief Executive Officer Chris Metz reassured enthusiasts if the sale is approved Remington’s legendary ammo is not going away. “Remington ammunition and accessories have a storied role in America's sporting heritage, with a legacy dating back to 1816…We are excited and honored to add the iconic Remington brand and green box to Vista Outdoor's portfolio of ammunition brands, and Remington accessories to our portfolio of Hunting and Shooting Accessories. The Remington brand is beloved by hunting and shooting sports enthusiasts everywhere and we look forward to restoring it to greatness by leveraging Vista Outdoor's scale, manufacturing infrastructure, distribution channels and Centers of Excellence.”

The Wall Street Journal reports the sale of all the brands and properties combined will, “…bring in at least $155 million to be applied against the company debts.” A July Washington Post article put the company’s current financial situation in perspective, though, indicating it has a total debt that may be as high as $500 million.

All purchase prices were not available at press time, although Vista Outdoor announced it has agreed to pay $81.4 million (gross) for the assets it seeks, subject to certain customary closing adjustments. New York’s WIBX radio reports the current offer for the Remington firearm assets, Ilion factory and Tennessee barrel-making facility came in at $13 million.

 

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