Business

Remington: US gunmaker files for bankruptcy


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EPA

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A Remington handgun – the firm is facing big debts and slumping sales

One of the oldest and best-known gun manufacturers in the US, Remington Outdoor, has filed for bankruptcy in the wake of slumping sales.

The firm, founded more than 200 years ago, filed for bankruptcy protection to cut a deal with its creditors.

Remington’s chief financial officer said the company’s sales dropped significantly in the year before its bankruptcy, court papers show.

The filing comes amid fresh demands for greater gun control in the US.

A shooting at a Florida high school in February has revived the debate on gun control, and on Saturday tens of thousands of young Americans took part in protests.

As a result of public pressure, some US retailers have attempted to restrict firearm sales, with some requiring background checks and others halting the sale of firearms in their stores.

After it emerged a Remington rifle was used in the 2012 Sandy Hook elementary school shooting, victims’ family members filed a lawsuit against the gunmaker.

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Media captionSandy Hook survivors march with Parkland survivors

In court papers filed in Delaware, Remington’s chief financial officer, Stephen Jackson, said the company was having difficulty meeting requirements from its lenders as a result of declining sales.

During the bankruptcy process, the company will stay in business.

In most US Chapter 11 bankruptcy processes, the debtor proposes a reorganisation plan to maintain its business and pay creditors over a period of time.



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