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Gunmaker Remington faces default as Americans buy fewer firearms
The Philadelphia Inquirer ^ | November 20th, 2017 | by Joseph N. DiStefano

Posted on 11/24/2017 6:31:02 PM PST by Mariner

Remington Outdoor, the second-largest U.S. gunmaker has suffered a “rapid” and “sharp” deterioration in sales and a similar drop in profits since January, and faces “continued softness in consumer demand for firearms,” credit analysts at Standard & Poor’s Global Ratings said in a report Friday.

S&P as a result has cut the company’s corporate credit rating — already at a junk-bond-level CCC+ — two full notches, to CCC-, a move likely to make the company’s high-yield debt less attractive to investors and lenders, and force Remington to pay more in interest. The company could face a change in control, bankruptcy, or default on its debt by next year.

A backlog of unsold, unwanted firearms will force Remington to operate at a loss and “pressure the company’s sales and profitability at least through early 2018, resulting in insufficient cash flow for debt service and fixed charges,” unless Remington gives up cash to pay for ongoing operations, S&P adds.

(Excerpt) Read more at philly.com ...


TOPICS: Business/Economy; Constitution/Conservatism; News/Current Events
KEYWORDS: banglist; layoffs; remington
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To: glasseye

I have a beautiful Winchester M70 NIB.

Won it in a raffle.

Can’t afford the ammo.


21 posted on 11/24/2017 6:59:38 PM PST by ButThreeLeftsDo (MAGA!!!)
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To: Mariner

Nice that stuff is so cheap, but I care about the company and employees...I hope they sell the company and brand...perhaps that will minimize losses.


22 posted on 11/24/2017 6:59:46 PM PST by CincyRichieRich (Extraordinary acts of God often start with ordinary acts of obedience. P. Yefros)
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To: Mariner

https://www.remington.com/rebates-promotions


23 posted on 11/24/2017 7:00:12 PM PST by smokingfrog ( sleep with one eye open (<o> ---)
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To: Mariner
No thanks, I am not buying something that puts me on a list stored on government servers that in the coming years could be used to issue a no-knock warrant and allow jack booted gub'ment storm troopers to kick down my door in order to confiscate it.

I have no such items. See there was this boating accident...

24 posted on 11/24/2017 7:01:53 PM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: Mariner

Main plant is in Ilion NY and their new facility is in Huntsville AL. Plant is currently on layoff for a week, it is hoped this will help.


25 posted on 11/24/2017 7:03:41 PM PST by Shady (We WON the Battle, Now let's WIN THE WAR!!!!)
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To: Mariner

Remington has been run into the ground by its management group. They bought the company and took out more loans than they could ever hope to pay back, kept the money, and now the company is going down. The QC on a lot of their breadbasket guns is way down and over the past few years they have marketed some of the strangest pistols I have ever seen. People are still buying lots of guns - they’re just not buying Remington guns.


26 posted on 11/24/2017 7:24:12 PM PST by 43north (Drive the scenic route and take the dog.)
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To: Mariner

It’s partly self-inflicted: the R51.


27 posted on 11/24/2017 7:31:00 PM PST by backwoods-engineer ( DJT won; we got Gorsuch and a bit of MAGA. Civil war before we get more?)
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To: hanamizu

I don’t think the problem they have/had with the older 700’s as far as firing when releasing the safety is helping the image much, either. I have one of those 700’s but never had any problem with it, but...


28 posted on 11/24/2017 7:33:20 PM PST by Hartlyboy
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To: USCG SimTech

I don’t see why they are in junk bond status after all the firearms they must have sold since 2009. Something fishy goin’ on.


29 posted on 11/24/2017 7:37:09 PM PST by ichabod1 (Smoke does not mean fire when someone threw a smoke grenade.)
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To: Mariner
The problem with Remington is Americans just aren't into hunting like they used to be and Remington, Winchester, Marlin, Savage, etc. are viewed as "grandpa's hunting rifle" brands.

The kids today want the guns they used in "Call of Duty" --black rifles.

And grandpa ain't gonna be around much longer which leads to Remington's other problem. Like iconic guitar manufacturer Gibson is currently facing, Remington's biggest competition on the market are used Remingtons.

30 posted on 11/24/2017 7:39:32 PM PST by Drew68
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To: Mariner

Savage `Trophy Hunter’. Nikon scope included with reticle. Accutrigger. Savage accuracy, good price.


31 posted on 11/24/2017 7:41:18 PM PST by tumblindice (America's founding fathers: all armed conservatives)
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To: backwoods-engineer

Packaging alone to send back recall’s is enough to bankrupt em ...... never seen so many failures for a firearm manufacturer ..... lawyers, litigation, legislation and over regulation oh me oh my . ......


32 posted on 11/24/2017 7:59:28 PM PST by Squantos (Be polite, be professional, but have a plan to kill everyone you meet ...)
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To: Mad Dawgg

No-Knock Warrants !?!

I bet the Dogs would have a bite First.


33 posted on 11/24/2017 8:04:28 PM PST by Big Red Badger (UNSCANABLE in an IDIOCRACY!)
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To: T-Bird45

Marlins from the 1970’s and 80’s are the best.
Both the lever action models 30 and 336, the semi-auto 922m, 9 and 45 and the model 60’s from that era are great guns.
During those years Marlin used a serial number system that goes down as the years went on.
Take the first two digits from 100 to figure out the year of manufacture, rifle # 24xxxxxxx was made in 1976, 19xxxxxxx was made in 1981, etc.


34 posted on 11/24/2017 8:05:15 PM PST by Lurkinanloomin (Natural Born Citizen Means Born Here Of Citizen Parents - Know Islam, No Peace -No Islam, Know Peace)
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To: glasseye

Mine is a left hand model from the same time period. Real tack driver.


35 posted on 11/24/2017 8:13:04 PM PST by Lurkina.n.Learnin (Wisdom and education are different things. Don't confuse them.)
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To: Mariner
Of course you could buy a lesser Ruger if you must.

I have several times with no regrets. I'm dropping hints that I would like a Ruger .375 for Christmas. I really don't need one but I want after reading how it compared with the .375 H & H. Ruger did a good job of matching and often exceeding the specs of the gold standard of big bore rifles.

36 posted on 11/24/2017 8:16:27 PM PST by CommerceComet (Hillary: A unique blend of arrogance, incompetence, and corruption.)
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To: Mariner

Want to improve sales? Elect another incompetent Democrat as president.


37 posted on 11/24/2017 8:32:00 PM PST by Bringbackthedraft (Damn, the tag line disappeared again? Coursors!)
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To: Big Red Badger

Not sure winning that bet has many upsides.


38 posted on 11/24/2017 8:33:28 PM PST by Durus (You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
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To: Mariner

A very large (10k sqft) gun shop opened in Ft Worth a year and half ago. They are now closed. They based their business modle (news report) on the Hildabest winning the election.


39 posted on 11/24/2017 8:34:54 PM PST by Deaf Smith (When a Texan takes his chances, chances will be taken that's for sure)
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To: Mariner

This is kind of a “so what?” news item. It’s not as though Remington will cease to exist or that we’ll be left with a shortage of firearms. If Remington goes bankrupt, it will either have its debt restructured, or its assets (including its brand name) will be sold off to new management. Current investors and bond holders will take a hit, but again “so what?”. They knew the risks.

What’s really amusing is that Remington probably expected (along with most other people) that Hillary would win the election. And that Hillary would be just as good of a gun salesperson as Obama was. Instead Trump won and the threat to our gun rights declined drastically, as did fear-driven demand. Remington is suffering because of that, but the rest of us aren’t.


40 posted on 11/24/2017 8:48:19 PM PST by dpwiener
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