Remington, the oldest gun maker in the United States, files for bankruptcy


Filing a Chapter 11 bankruptcy will reportedly allow Remington to remain in business while restructuring its $700 million debt.

US gun maker Remington Outdoor Company has filed for bankruptcy protection, after years of falling sales and lawsuits tied to the Sandy Hook Elementary School massacre.

A 200-year-old American company whose name is almost synonymous with firearms has gone to bankruptcy court to help it survive financial hard times.

In some of the biggest US youth demonstrations for decades, protesters called on lawmakers and President Donald Trump to confront the issue.

The day before the filing, hundreds of thousands of young people gathered in all 50 states and on six continents for the March For Our Lives, an anti-gun violence march organized by survivors of the Florida shooting.

Remington Outdoor went to court in DE as it continues efforts to complete a deal that will see its private equity owner, Cerberus, relinquish control to creditors.

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Citigroup Inc said last week it will require new retail-sector clients to sell firearms only to customers who passed background checks and to bar sales of high-capacity magazines.

Reuters reports that Remington's creditors, including Franklin Templeton Investments and JPMorgan Asset Management have agreed to exchange debt for equity in the company.

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". Public outrage over the massacre zeroed in on Remington after the authorities reported that the gunman had used an AR-15-style rifle made by the company.

Katie-Mesner Hage, an attorney representing Sandy Hook families in a lawsuit against Remington, said in a prepared statement that she did not expect the gunmaker's bankruptcy would affect their case.

In 2017, firearm background checks, which are used as a barometer of gun sales, declined faster than they have since the Federal Bureau of Investigation began compiling the data 20 years ago.