Restructuring the company to reduce debt by about $700 million
American arms manufacturer Remington Outdoor began bankruptcy proceedings.
As reported in a press release it reached an agreement with its creditors to support the restructuring of the business.
“The difficult situation in the industry makes today’s agreement is reasonable. I am confident that this realignment will be for the Remington guarantee of further work as a strong company and national heritage”, – said the Chairman of the Board of Directors of the company Jim Geisler.
Remington also announced that it will continue to work as usual, continuing payments to employees and trading partners. The restructuring will not affect customer support and service.
Chief Executive officer of the company Anthony Acitelli noted that the company “will emerge from this process with a lower volume of borrowings and high liquidity”. This will give Remington the position for more aggressive competition and will provide opportunities for further growth.
The restructuring will allow the Remington to reduce the debt by about $700 million, and to increase the number of capital units of $145 million.
Remington, which in its 200-year history of supplying weapons to the field of the civil war and both World wars, now owned by Cerberus Capital Management. However, according to CNN, after the restructuring of investima will no longer own the gun manufacturer.
Professor, new York University Robert Spitzer told The Guardian that Pro-gun policy of US President Donald trump became the reason of falling of sales in this segment and bankruptcy.. The situation has been dubbed “trompowsky fall” (Trump slump).
After the Golden era of sales in the previous President Barack Obama gun manufacturers in America are now faced with problems. Sales dropped, leaving the company with excessive inventory of products in slides and falling revenue, the article said.
“Sales in this area is highly politicized, says Spitzer. – Buy weapons lately was done not only because of the desire to obtain a new product, but as a statement; not only for fear of what could be tighter regulation, but as a statement against Obama.”
After joining the White house, trump’s sales greatly reduced, coming in line with the long-term trend of falling interest in weapons, says the Professor.
“The number of owners of the weapon is reduced since the 1970s, and now there are less than ever,” said Spitzer. Fewer people hunted, the interest of the youth to arms will also decrease, while the gun industry has little success in trying to appeal to women and minorities.