According to a report from Reuters, Remington Outdoor Company Inc. has reached out to banks and credit investment funds in search of financing that will allow them to file for bankruptcy.
The story says the company, one of the largest gun-makers in the country, has been working with the investment bank Lazard Ltd. about options to restructure its stunning $950 million in debt. Remington recently reached an agreement with its creditors after missing a coupon payment on that mountain of debt.
This doesn’t mean Remington is going under or will be no more. What they’re actually doing is seeking something called “debtor-in-possession financing” that will allow them to fund the day-to-day operation of the company once it files for bankruptcy.
The story says “the size of the financing and timing of Remington’s bankruptcy plans could not be learned.”
Remington, based in Madison, North Carolina, faces a maturity of a $550 million term loan next year and it has $250 million of bonds that come due in 2020.
Like all gunmakers, Remington has faced declining sales since the 2016 election, which has largely been attributed to the fact that Americans don’t feel an urgency to buy guns and ammunition for fear of impending federal gun legistlation under the Trump administration as they did under the Obama administration.
Big Green’s sales plunged 27 percent in the first nine months of 2017, resulting in a $28 million operating loss, the story says