Tennessee residents have used firearms manufactured by Remington to hunt or protect their property for two centuries, but declining sales have placed the future of the North Carolina-based company in jeopardy. The Remington Outdoor Company announced on Feb. 12 that it would be seeking bankruptcy protection to keep its doors open while it struggles to come to grip with its debts, and many experts say that the victory of a president who staunchly supports firearms is largely to blame.
Hillary Clinton enjoyed comfortable leads in most opinion polls before Americans took to the polls in Nov. 2016, and demand for guns was high among those who feared that the former Secretary of State would introduce strict new gun laws after winning the presidency. However, these fears evaporated, and sales plummeted after Donald Trump entered the White House. Gun dealers around the country have been left sitting on large stockpiles of weapons with few new orders.
Remington is saddled with almost $1 billion debt that was taken on when Cerberus Capital Management acquired the company in 2007. Bankruptcy filing is the latest blow for a company that employs 3,500 workers and has suffered financial setbacks in the past. Remington has also had issues with the media and was scrutinized closely in 2012 when a gunman used one of its weapons to massacre 20 children at an elementary school in Connecticut.
Attorneys with debt relief experience may explain to the owners of other struggling businesses how the nation’s bankruptcy laws can be used to protect jobs and escape unmanageable levels of debt. Seeking Chapter 11 protection allows entrepreneurs to stay in business and pay their debts down over time, and attorneys may help by preparing bankruptcy petitions and drafting reorganization plans.