The Remington Effect?

[choprzrul]

I wonder how much the Remington bankruptcy has contributed to current ammunition and components shortages?

When will Vista Outdoors get things cranked back up again I wonder? Will an influx of Remington primers and ammo provide enough product to help drive prices back down again?

When was the last time anyone saw new 2021 production Remington ammo or primers??

**EDITED TO ADD**

Looks like Remington handgun ammo is out there....at a price.... https://ammoseek.com/handgun-ammo/Remington ...but I don't know if it was mfg before or after bankruptcy?

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[Dano3467]

^^^ with this logic, I can retire tomorrow

[ScottsBad]

Federal owns Remington, the CEO of Federal said they are running the Remington factory but that the factory was not making much ammo before, and needs work to get it to full capacity. He said they are working on it, but it takes time.

I guess Remington was run into the ground.

[kcheung2]

Federal owns Remington, the CEO of Federal said they are running the Remington factory but that the factory was not making much ammo before, and needs work to get it to full capacity. He said they are working on it, but it takes time.

I guess Remington was run into the ground.

I agree, that sounds like code word for the machinery was so badly neglected that it was held together with wire and rubber bands.

[ScottsBad]

I agree, that sounds like code word for the machinery was so badly neglected that it was held together with wire and rubber bands.

LOL exactly.

[JackEllis]

FYI when a company files a bankruptcy petition, it generally means the firm is seeking protection from a liquidation by creditors (the NRA bankruptcy is a weird exception) until it can arrange for alternative financing, a buyer, or an orderly liquidation of its assets. If I understand the Remington situation correctly, there was nothing fundamentally wrong with it's business. Instead, the private equity folks who bought it loaded up the company with debt to take out cash. There was so much debt that any softness in the economy would affect Remington's ability to service that debt. By skimping on maintenance and not replacing old machinery with new stuff, Remington was able to divert some cash to service the debt but eventually the operating side of the business had trouble as well.

Making guns and ammo in the US should be a money machine, just like casinos are money machines. But it does take some management skill and sound finance practices.

[choprzrul]

FYI when a company files a bankruptcy petition, it generally means the firm is seeking protection from a liquidation by creditors (the NRA bankruptcy is a weird exception) until it can arrange for alternative financing, a buyer, or an orderly liquidation of its assets. If I understand the Remington situation correctly, there was nothing fundamentally wrong with it's business. Instead, the private equity folks who bought it loaded up the company with debt to take out cash. There was so much debt that any softness in the economy would affect Remington's ability to service that debt. By skimping on maintenance and not replacing old machinery with new stuff, Remington was able to divert some cash to service the debt but eventually the operating side of the business had trouble as well.

Making guns and ammo in the US should be a money machine, just like casinos are money machines. But it does take some management skill and sound finance practices.

Makes me wonder if the firearms side of the house was using the ammo division as a cash cow to keep the gun division afloat and simply drained ammo manufacturing of resources thus running it in the ground?

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[Imageview]

Every side of the business was being sucked dry by the debt. That, combined with demand slump under Trump killed the company. The business was likely profitable, the debt was unfortunately unsustainable.