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Bankruptcy gun manufacturer Remington Outdoor is to be split up and sold



The arms manufacturer Remington Outdoor will be broken up and sold after an auction over several days of bankruptcy, where seven different buyers won the bid for packages of the company’s weapons and ammunition.

The sale of Remington’s ammunition and weapons manufacturing business, the Remington brand and others brings in at least $ 155 million to be spent on the company̵

7;s debt.

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Lawyers for Remington have not responded to requests to comment on the auction results, which were partially revealed Sunday in court.

Judge Clifton R. Jessup Jr. has scheduled a Tuesday meeting of the U.S. Bankruptcy Court in Decatur, Ala., to consider approving the auction results.

The auction is the culmination of Remington’s second bankruptcy in recent years. The company Huntsville, Ala., Filed Chapter 11 bankruptcy protection in late July, saying it did not have the cash to make weapons to meet the demand for its products.

VISTA OUTDOOR WINDS REMINGTON AMMUNITION

The COVID-19 pandemic and civil unrest have Americans stockpiling weapons and ammunition, but Remington said it lacked money, despite having wiped out hundreds of millions of dollars in debt in a 2018 bankruptcy.

In this March 1, 2018 file image, the Remington name is etched on a Model 870 shotgun at Duke’s Sport Shop in New Castle, Pa. (AP Photo / Keith Srakocic, File)

The company is facing a lawsuit over its marketing of the Bushmaster rifle, which was used in the December 2012 killing of 20 children and six adult school staff at Sandy Hook Elementary School in Newtown, Conn.

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The bankruptcy in 2020 stopped a lawsuit brought by the families of some of the victims of Sandy Hook, which had been preserved in the first review through Chapter 11.

Remington has not said what its drive to throw its assets on the bankruptcy auction block would mean for the Sandy Hook lawsuit or for corporate retirees who crowded a session with bankruptcy administrators and asked what would become of their benefits.

FILE – In this file image from March 1, 2018, a light advertising product from Remington products hangs from the ceiling of Duke’s Sport Shop in New Castle, Pa. (AP Photo / Keith Srakocic, File)

The largest revealed acquisition to date is Vista Outdoor Inc.’s acquisition of Remington’s ammunition company Lonoke for $ 81.4 million. Sierra Bullets Inc. in Missouri won the bid for another part of Remington’s ammunition business with a bid of $ 30.5 million, court papers show.

Sturm Ruger & Co. gets a share of Remington’s arms business with an offer of $ 30 million, while Roundhill Group LLC pays $ 13 million for other items in firearms production. JJE Capital Holdings LLC acquires H&R, Parker and several other firearms brands.

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Sportsmans Warehouse Inc. gets the Tapco brand, the court papers reveal.

Nevada Franklin Armory Inc. was declared the winning bidder for Remington’s Bushmaster brand. A spokesman for the Franklin Armory was not immediately available Sunday for comment.

This article originally appeared in The Wall Street Journal.


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