One of America's oldest gun makers 'Remington' files for bankruptcy
Remington Outdoor Brands has filed for bankruptcy. The bankruptcy filing allows Remington to stay in business while restructuring its massive debt.
The company has been planning to reduce its debt by $700 million through the Chapter 11 process and contribute $145 million to its subsidiaries. Remington plans to keep on making guns. The company said, when it first announced its plan to file for bankruptcy in February, that operations "will not be disrupted by the restructuring process."
Founded in 1816, Remington is one of the oldest and best-known gun makers in the world. It's owned byCerberus Capital Management, which plans to shed ownership once the bankruptcy is complete.
Remington is headquartered in North Carolina. It makes a variety of handguns, shotguns and rifles at its sprawling 19th-century factory in Ilion, N.Y. Its products include the Bushmaster AR-15-style rifle that was used in the 2012 mass shooting in Newtown, Connecticut.
The company has been sued by family members of the Sandy Hook victims. An attorney from the law firm representing those family members said it does not expect the bankruptcy filing to affect its clients' case "in any material way." The company also settled a class action lawsuit a few years ago regarding allegations of defective rifles.
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