UPDATED 5:43 p.m. Feb. 12
ILION – Remington Outdoor Co., the nation’s oldest gun manufacturer, has reached a financing deal that will allow it to continue operating as it files Chapter 11 bankruptcy protection, according to The Associated Press.
When filing Chapter 11, a debtor usually proposes a plan of reorganization to keep its business alive and usually retains possession and control of their assets under the supervision of a bankruptcy court, and pay creditors over time.
Calls by both TheValleySide and The Associated Press to Remington Arms headquarters in Madison, North Carolina, and the factory in Ilion went unanswered and have not been returned, but in a press released issued Feb. 12, the company announced “it has reached a Restructuring Support Agreement with creditors holding a majority of the FGI Operating Company, LLC, Term Loans due in 2019 and Senior Secured Notes due in 2020.”
“Remington’s business operations will continue to operate in the normal course and will not be disrupted by the restructuring process. Payments to trade partners, employee wages and other benefits, support for customers, and an ongoing high level of service to consumers will continue without interruption,” the release says.
“Since its founding over 200 years ago, Remington has been a uniquely American company and brand. Our longevity is owed to generations of loyal customers and hard-working employees who met challenges and delivered results,” Executive Chairman of Remington, Jim Geisler, commented in the press release. “Difficult industry conditions make today’s agreement prudent. I am confident this regrouping ensures that Remington will continue as both a strong company and an indelible part of our national heritage.”
“What I know is what I’ve gotten online with what limited reporting there has been,” said Ilion Mayor Terry Leonard. “I don’t know what this is going to mean locally. Sometimes it’s just that they’re moving money around.. I’m hopeful Remington is going to remain financially stable”
“What I’m hearing is that they’re bringing some product lines back into Ilion and some jobs with it,” Leonard continued. “I know sales have been slow and they had those furloughs late last year. I cannot pretend to know what they’re doing at the corporate level but I want to be optimistic.”
Residents too are opting for optimism in the wake of the news.
“I hope they get bought out from another investor and grow and prosper,” said Ilion resident Debbie French, whose son works at the Ilion plant. “It would be devastating to the area if they closed as they are a major employer. People would be forced to leave the area, thus hurting all other businesses around as well as the economy.”
“Importantly, the fundamentals of our core business remain strong,” Anthony Acitelli, Remington’s Chief Executive Officer, stated in today’s press release. “We have an outstanding collection of brands and products, the unqualified support of a vibrant community across the industry, and a deep and powerful culture. We will emerge from this process with a deleveraged balance sheet and ample liquidity, positioning Remington to compete more aggressively and to seize future growth opportunities. We look forward to serving our customers, our partners throughout the industry, and our many fine employees, now and long into the future.”
To read the full press release, including further details of the bankruptcy proceedings, follow this link: https://www.prnewswire.com/news-releases/remington-outdoor-company-announces-restructuring-support-agreement-with-creditors-for-a-comprehensive-financial-restructuring-and-145-million-of-new-capital-300596970.html