Remington Outdoor Co., one of the largest American manufacturers of ammunition and firearms, announced on Monday that it would file for bankruptcy protection. The company has around 3,500 employees.
The bankruptcy may be surprising considering president Trump’s strong support for Americans’ right to bear arms. However, after his election, Remington’s sales took a hit since “Hillary Clinton’s defeat erased fears among gun enthusiasts about losing access to weapons,” according to Bloomberg. Retailers reduced orders as they were left with unsold inventory.
The gun manufacturing industry had been growing despite a decline in ownership rates. In 2014, 31 percent of American households reported owning a firearm, down from 47 percent in 1973, but more than 11 million firearms were manufactured in 2016, compared to fewer than 4 million 10 years ago – therefore gun ownership has become more concentrated, with some gun buyers becoming known as “super owners”.
Remington Outdoor Co. had been acquired in 2007 by Cerberus Capital Management, led by Stephen Feinberg, a strong supporter of Donald Trump. The company ended up with almost USD 1 million in debt. The bankruptcy filing will allow it to stay in business while it develops plans to turn the company around and pay creditors.
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