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Bankruptcy Protection Filed By Oldest U.S. Gun Manufacturer Remington


03/26/2018


Bankruptcy Protection Filed By Oldest U.S. Gun Manufacturer Remington
Continuous declining sale of its arms has forced Remington Outdoor – the oldest gun manufacturer in the United States to file for bankruptcy.
 
With thee intention to come to a settlement with its creditors, the company set up more than 200 years ago had to file for protection from bankruptcy. 
 
According to court papers filed by the company, the sales of the company had significantly gone down in the year before the filing of the bankruptcy, said the chief financial officer of Remington.
 
In recent months a spate of shootings in the U.S. has created a new wave of demand for greater gun control and it is amidst such an environment that the company has filed for bankruptcy.
 
On Sunday, multiple protest all across the U.S. saw thousands of protesters taking to the street for protesting against the Florida high school shooting in February. That incident along has reignited raging debates about greater gun control.
 
The minimum age for purchase of firearms have ben raised to 21 years by some of the retailers in the country or such retailers have stopped stocking of semi-automatic weapons al together.
 
During 2016 – the year when the U.S. presidential elections were held, a record number of background checks of purchasers of guns in the U.S. was conducted and processed by the FBI. However, that rate had fallen drastically ever since Donald Trump assumed office. 
 
The reason for that change, according to analysts, was that a larger number of guns were bought by U.S. citizens in 2016 over fears of a greater and stricter gun control regimen under Hilary Clinton if she won the presidential elections. 
 
And the opposite happened after Trump assumed office because the purchasers of firearms in the U.S. were less skeptical of stricter gun control laws under Trump and they do not perceive the Republican president to actually refuse the people the constitutional right of carrying arms. 
 
It was in 1816 that Remington was first created and is most know for its rifles and shotguns.
 
The gunmaker came under fire through a lawsuit filed by the family members of a victim of the 2012 Sandy hook elementary school shooting after it was revealed that a Remington made weapon had bene used in the shooting.
 
The declining sale of its firearms had resulted in the company not being able to meet the commitment made to the creditors, said Remington's chief financial officer, Stephen Jackson according to the court papers filed in Delaware.
 
The company will continue to operate as usual and stay in business till the completion of the bankruptcy process.
 
A reorganization plan is typically proposed by the debtor of a company that has filed for bankruptcy and agrees to repay creditors over an agreed long-term payment structure in most US Chapter 11 bankruptcy processes.
 
(Source:www.bbc.com)