Editor’s Note: The NSSF reports on the sales numbers of firearms based on monthly purchases. For the month of June 2020, the Remington Model 700 was the top selling firearm for the month. The M700 is consistently one of the top sellers in the rifle category, yet here they are again…
- Company seeks “going concern” sale to complete restructuring
- Operations to remain ongoing during restructuring process
Huntsville, AL – Remington Outdoor Company (“Remington” or the “Company”), a leading manufacturer of firearms and ammunition, announced today that Remington and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Alabama (the “Court”). The Company intends to conduct a competitive bidding process for the sale of some or all of its assets pursuant to Section 363 of the Bankruptcy Code.
The court’s protections during the Chapter 11 process will enable the Company to manage the sale process on an expedited basis while protecting the interests of its customers, employees and other stakeholders. Remington is in active discussions with a number of parties and will continue to engage with parties interested in a going-concern sale. The Company expects to solicit bids prior to an auction to be held in September 2020.
The Company has filed with the Court a motion to approve the use of cash collateral securing its existing Priority Term Loan. Subject to court approval, this cash collateral, combined with cash from operations, is expected to provide sufficient liquidity to, among other things, support the company’s continuing business operations and to minimize any disruption during the sale process. The Company has also filed with the Court a series of customary motions seeking to continue operating its business and facilities. These “first day” motions include requests to continue to pay wages and provide benefits to employees as usual.
Court filings and other documents related to the Court-supervised process are available at https://cases.primeclerk.com/RemingtonOutdoor. For more information, contact the Company’s noticing and claims agent at (877) 755-3450 (for toll-free domestic calls) and (347) 338-6538 (for tolled international calls), or email RemingtonInfo@primeclerk.com. Court filings and claims information are available at the U.S. Bankruptcy Court website, http://www.mnb.uscourts.gov/.
Ducera Partners is serving as financial advisor and investment banker to Remington and O’Melveny & Myers LLP is serving as the Company’s legal counsel.
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