The Firing Line Forums

Go Back   The Firing Line Forums > The Conference Center > General Discussion Forum

Thread Tools Search this Thread
Old February 13, 2018, 03:19 PM   #26
Senior Member
Join Date: March 16, 2007
Location: Southern Arizona
Posts: 3,837
Too bad that a once proud and good brand could be run so far into the ground. They don't make many decent guns any more IMO.
JWT is offline  
Old February 13, 2018, 04:22 PM   #27
Stats Shooter
Senior Member
Join Date: August 26, 2016
Location: Mississippi
Posts: 1,558
From what I can tell, Remington's term debt is $950 million and lord only knows what their soft liabilities are. Based on what little financial information I can find regarding the company. Remington Outdoor Company is an LLC and was owned by Cerberus Capital Management.

Remington owns the following brands:

Storm Lake
Dakota Arms
Advanced Armament
Parker Gun

I think some of these purchases have been disasters from the little I can find. The degradation of quality in the brands they have purchased is well documented as well as their own Remington brand. In particular Bushmaster, Marlin, and Remington arms. I believe they have tried to compete and brake into the lower-end firearm market with enormous investments, mostly debt financed. Plus, as a company grows that large, overhead grows with it and the volume of sales necessary to sustain them is much higher than it would be if all those companies remained independent.

Also, in a down market, with all of your products in the same industry, a downturn increases your exposure dramatically....and being investor owned there is a lot less flexibility to handle financial challenges. Investor owned also means a strong push for growth and increased profits at the expense of just about any other factor.

So, what will likely happen is that many of the brands now owned by Remington will be sold to pay off the debt, Ceberus will lose control of the company and it will be sold to new ownership, and hopefully Remington can get back to making decent shot guns and bolt action rifles.

As has been mentioned already, Savage and Ruger had to go through similar situations in the past and came out much better companies. For a while, Savage slimmed down and made only the 110 action after being sold.
Stats Shooter is offline  
Old February 13, 2018, 06:17 PM   #28
Marco Califo
Senior Member
Join Date: April 4, 2011
Location: LA
Posts: 1,519
Remington Outdoors is/was privately held by Cerebus. Privately held entities are exempt from Securities Exchange Commission regulation. This tends to make any outside scrutiny or even glimpse into their financial reporting impossible. My understanding is the Cerebus walks away with no stake at all. What ever their plan was obviously did not work. I expect any viable components to be sold or spun off. Anything else will liquidated or shutdown. The investment bankers behind this debacle got paid their money long ago, paid for with all that debt.
Marco Califo is offline  

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

All times are GMT -5. The time now is 05:31 AM.

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2018, vBulletin Solutions, Inc.
This site and contents, including all posts, Copyright © 1998-2018 S.W.A.T. Magazine
Copyright Complaints: Please direct DMCA Takedown Notices to the registered agent:
Contact Us
Page generated in 0.07239 seconds with 8 queries