The nation’s oldest gun maker, Remington Arms, has filed for bankruptcy this week. This is the second time for the famous gun-making company to file since 2018.
The company first sought bankruptcy protection two-years ago after reporting nearly $1 billion in debt. The company is now filing for Chapter 11 protection, even as firearm sales jumped about 400 percent this year.
According to court filings, Remington estimates it has between 1,000 and 5,000 creditors and lists both its assets and liabilities as between $100 million and $500 million. And although the 204-year-old U.S. gun-maker reported the surge in sales amid the Coronavirus pandemic and George Floyd protests; revenue for manufacturers had slumped under a Republican administration. This is typically because gun owners are not as compelled to stockpile weapons out of fear that Congress will create more stringent gun-control laws.
Over the past three years, massacres and high-profile mass shootings have played their part with large retail chains such as Walmart restricting or ceasing gun sales, entirely from stores. Most recently according to CBS News, Walmart said last September it would not sell ammo after the mass shooting in its El Paso, Texas, store which left 22 dead.
Another lawsuit against Remington stems from the families of the victims in the 2012 Sandy Hook school shooting, which was filed in 2016, arguing that Remington was negligent in selling the weapon used in the massacre. The Supreme Court ruled in 2019, allowing families to move forward with lawsuits against Remington. The suit is scheduled to go to trial in September 2021.
According to The New York Times, during its 2018 bankruptcy filing, Remington was allowed to shed $775 million in debt. As part of its restructuring, the business transferred ownership to former creditors, including Franklin Templeton Investments and J.P. Morgan Asset Management, according to the newspaper.