GUNMAKING FACILITY — Remington Arms in Ilion has faced some recent downsizing. It had about 1,100 employees before about 120 were laid off in March 2017. About 55 more were laid off last September. In addition, the company said in October that it was moving forward with temporary employee furloughs later in 2017. (Sentinel file photo)
Report: Remington Arms seeks financing to file for bankruptcy
The owner of the Remington Arms gunmaking facility in Ilion is seeking financing that will allow it to file for bankruptcy, according to an exclusive report by the Reuters news agency.
Remington Outdoor Company, Inc., based in North Carolina, has reached out to banks and credit investment funds and is seeking debtor-in-possession financing that will allow it to fund its operations once it files for bankruptcy, Reuters said Thursday.
The report cited persons familiar with the matter. The Remington plant in Ilion referred questions to a Remington representative in North Carolina, who could not be reached for comment Friday. Remington’s private equity owner, Cerberus Capital Management, L.P., declined to comment Friday on the Reuters report.
“Remington Arms is an iconic business in our region that has employed generations of families for over 200 years. Remington is one of our nation’s longest continuously operating manufacturing facilities,” Congresswoman Claudia L. Tenney, R-22, New Hartford, said Friday. “Unfortunately, economic downturns in the firearms industry and outstanding debt have forced Remington’s parent company to seek new credit options and financing through bankruptcy protection.”
Tenney further said, “in addition to volatility, Gov. Cuomo’s anti-Second Amendment policies have negatively impacted Remington’s Ilion production facility. I have been a strong supporter of Remington Arms and its hardworking employees. Our office will continue to offer support to Remington and the families impacted during this difficult time.”
The Reuters report said Remington’s outreach regarding financing comes as the company reached a forbearance agreement with creditors this week following a missed coupon payment on its debt. Reuters said last month that the company has been working with investment bank Lazard Ltd. on options to restructure its $950 million debt.
Credit rating agencies have said that Remington’s capital structure is not sustainable, given its weak operating performance and the volatility in the demand for firearms and ammunition, said Reuters. The report said Remington’s sales have declined partly because of receding fears that guns will become more heavily regulated by the U.S. government, according to credit ratings agencies.
Remington Arms in Ilion has faced some recent downsizing. It had about 1,100 employees before about 120 were laid off in March 2017. About 55 more were laid off last September. In addition, the company said in October that it was moving forward with temporary employee furloughs later in 2017.
Remington Arms marked its 200th anniversary in 2016.
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