Remington: Oldest US gunmaker files for bankruptcy

One of the Largest Gun Manufacturers in the Country Files for Bankruptcy

The company filed for Chapter 11 late Sunday. For as Fortune noted in mid-February, the centuries-old company has been planning to file for bankruptcy for some time.

The Bushmaster AR-15 rifle was used in the Sandy Hook shooting in CT in which 20 first-graders and six educators were killed in 2012.

Remington was acquired by private equity firm Cerberus Capital Management in 2007 for about $370 million, including debt.

The bankruptcy filing comes as the industry faces pressure over school shootings; thousands of students, educators and others participated in the March for Our Lives in Washington, D.C., and other cities over the weekend. "Families of the Sandy Hook victims sued Remington, saying the manufacturer of the military-style assault rifle used by the gunman bears some responsibility for the attack", Haag continues. "Under Cerberus, Remington's sales initially boomed as total gun sales in the United States grew".

The election of Trump-who pitches himself as a friend of gun owners-was actually bad for business. Bloomberg has cited a research study conducted by Harvard and Northeastern universities that concluded that about half the guns in America are owned by only 3% of the adult population, with an average of 17 firearms each.

Remington is planning to use the Chapter 11 bankruptcy to restructure its debt. More than a half of them own just one or two, whereas 14% of them - 7.7 million or 3% of the USA population - own anywhere between eight to 140 guns.

Remington is headquartered in Madison, North Carolina.

Remington, best known for its rifles and shotguns, was founded in 1816. Remington is seeking to confirm its bankruptcy plan by May 3.

BlackRock - a major shareholder in Sturm Ruger, American Outdoor Brands and Vista Outdoor Brands - announced about a week after the Parkland shooting that it wanted to speak with the three firearms makers about their responses to the tragedy.

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