Remington seeks bankruptcy protection
On March 25, 2018, the company Remington, which began making flintlock rifles when there were only 19 United States, filed for bankruptcy protection.
Since the election of Donald Trump, who ironically called himself a “true friend” to the gun industry, the manufacturers' mounting debt increased rapidly.
According to WCTV, “Panic sales that drove revenue for gun makers ever higher evaporated with Trump's arrival in the White House, and Remington's production of one of the most well-known weapons in the world, the Bushmaster AR-15, have overwhelmed the Madison, North Carolina, company.”
Late Sunday, the Remington Outdoor Company agreed to a prepackaged deal. The deal will give holders of the company a 550 million dollar term loan.
It is unclear as to what will happen to the 3,500 employees at Remington.
According to WCTV, “Trump was the first sitting president to address the National Rifle Association in three decades, telling members at their annual meeting last spring that ‘You have a true friend and champion in the White House.”
In 2017, firearm background checks declined faster than any year since 1998.
BlackRock, a major shareholder in gun makers Sturm Ruger, American Outdoor Brands, and Vista Outdoor Brands, is looking into creating new investment funds for investors that exclude firearms makers and retailers.