Remington bankruptcy: Nation's oldest gun maker files for Chapter 11

Remington bankruptcy: Nation's oldest gun maker files for Chapter 11

The owners of debt-laden Remington, which has made guns for over 200 years, filed for bankruptcy protection in Delaware, Michigan.

According to various reports and a bankruptcy filing in DE, the brand reached a deal with lenders to reduce its debt by about $700 million and add about $145 million in new capital in February.

Privately held Remington Outdoor announced in mid-February that it had negotiated a restructuring deal with its major creditors and would file a prepackaged Chapter 11 reorganization plan.

A Remington-manufactured Bushmaster AR-15-style rifle was used in the Sandy Hook shooting that killed 26 people - 20 first-graders and six school staffers - in 2012.

Cerberus, which bought the company in 2007, tried to sell Remington just a week after Sandy Hook - but no-one wanted to buy it. Protestors are seeking stronger gun restrictions after 17 were killed in a massacre at Marjory Stoneman Douglas High School in Parkland, Fla.

Some of Wall Street's heaviest hitters are stepping into the national debate on guns as investment firms ask firearms makers what they are doing about gun violence.

Remington was sued by victims' families after the Sandy Hook tragedy.

It is thought that gun sales slowed after Mr. Trump took office because firearms enthusiasts generally do not fear a Republican president will try to deprive them of their constitutional right to bear arms.

Since 2009, the number of guns in private hands in the United States has exceeded the country's population.

According to the Chapter 11 bankruptcy filing, Remington still has between $100 million and $500 million of debt. Soon after, "Cerberus dropped plans for an initial public offering of what was then known as the Freedom Group".

"We know our clients also care about these issues, and we have begun to engage with them in the hope that they will adopt these best practices over the coming months", the statement reads.