Firearms company Remington files for Chapter 11 bankruptcy


Remington Outdoor Company has filed for bankruptcy protection.

An American manufacturer of guns, Remington Arms filed for bankruptcy on Sunday. Specifically, Remington's plan is to "reduce its debt by $700 million through the Chapter 11 process and contribute $145 million to its subsidiaries".

It also faced political and financial backlash after the Sandy Hook shooting in CT left 20 first-graders and six educators dead in 2012.

Remington's parent company Cerberus Capital was shunned by investors after its Bushmaster gun was used in the 2012 attack and has now been forced to borrow $100 million to continue operations.

Remington Outdoor Company's headquarters are in Madison, North Carolina. Historically, gun sales drop under Republican leadership because there is less fear among gun owners of stricter gun legislation supported by Democrats.

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. Family members of the victims have filed suit against the company. More than a half of them own just one or two, whereas 14% of them - 7.7 million or 3% of the USA population - own anywhere between eight to 140 guns.

A recent study by Harvard University and Northeastern University found that the number of privately owned guns in America grew by more than 70 million - to approximately 265 million - between 1994 and 2015.

Remington is planning to use the Chapter 11 bankruptcy to restructure its debt. "This 3% of the population owns half of the civilian guns in the US", reports Youyou Zhou for Quartz. The company has refused to say whether the bankruptcy filing - which it first signaled last month - will affect the settlement. "Rather, he said, it's a response to the fact that grief in the wake of mass shootings rarely inspires lasting action to prevent firearms from falling into the wrong hands", Siegel reports.