Remington announced May 18th it has emerged from Chapter 11 protection. The company, which makes firearms, ammunition, and other outdoor products, had sought shelter from an economic storm filled with product liability suits, bad publicity, and a recent contraction in the firearms market.
Several Remington creditors have taken equity positions in the reformed company which has also received additional loans from other sources. Remington’s top management claim the restructure will allow the 200-year-old company to better meet customer needs and remain financially stable.
It remains unclear if Remington, which owns several other major gun brands such as Marlin and Bushmaster, will overcome the ill will created among firearms buyers after cost cutting eroded product quality for years. While Remington has reached a settlement on one class-action law suit over its defective Model 700 series rifles, it still faces more litigation on the issue, as well as suits brought against its Bushmaster division in an unrelated matter.
