Remington Gun Company Goes Bankrupt


Katie Cole

The United States’ oldest gun manufacturer, Remington Outdoor filed for bankruptcy this Sunday, less than a day after the country erupted into massive protests against gun violence. After 200 years of business, Remington now holds $1 billion in debt and the business will now be turned over to the creditors to manage. This filing has serious implications for the Sandy Hook families who sued the gun maker after a rifle they made was used in the Sandy Hook shooting in 2012. Families now have to get approval from a bankruptcy judge to allow their case to continue.

All legal action against the company automatically stops until the company digs its way out of bankruptcy. This filing comes as the nine families of victims await the Connecticut State Supreme Court decision as to whether to move to put the case before a judge or dismiss the case as a lower court had done previously.

The bankruptcy filing does not signify the end of Remington. Gun manufacturer Colt also filed for bankruptcy in 2016, restructuring the company to eliminate $200 million in debt and gaining $50 million in new capital. Remington will continue to manufacture firearms despite the bankruptcy and restructuring.

So why is Remington under? In an interesting turn of events, the advent of a Republican president shrunk gun sales. During the 2006 democratic congressional majority and Obama presidency, gun sales went up due to fear of stricter gun control. During 2016, gun companies ramped up in prediction of a Hillary presidency. When Trump took office gun sales slowed along with the fear that guns would be taken away and companies found themselves with lots of guns and little sales. This, along with a 2.5 million dollar loss due to a recall of Remington’s Mark IV line of handguns and 12.5 million dollars in payoff after losing a class action lawsuit over their M700 rifles. The Sandy Hook families are one of several lawsuits currently pending against the company.