Remington’s corporate owners (Cerberus) have a heck of a business model: depend upon mass shootings and subsequent fearmongering of “gun legislation” to goose their sales. I guess it didn’t work so well in the long run.
Matthew Haag writes:
Remington Outdoor, one of the oldest firearm manufacturers in the United States, filed for bankruptcy protection on Sunday amid mounting debt and declining sales.
After 20 children and six adults were killed in 2012 at Sandy Hook Elementary School in Newtown, Conn., public outrage zeroed in on Remington after the authorities reported that the gunman had used an AR-15-style rifle made by the company. Families of the Sandy Hook victims sued Remington, saying the manufacturer of the military-style assault rifle used by the gunman bears some responsibility for the attack.
Some investors then divested from the company, and Remington borrowed heavily during that time, including to buy out investors who wanted to leave. But the prospect of imminent gun control legislation helped Remington sales surge 36 percent, to $1.3 billion in 2013, according to Moody’s.
The company expected a similar bump in sales if Hillary Clinton had won the presidential election in 2016 because of her possible pursuit of gun control legislation. But in the first nine months of Donald J. Trump’s presidency, Remington’s sales were down 27.5 percent.
(click here to continue reading Remington, Centuries-Old Gun Maker, Files for Bankruptcy as Sales Slow – The New York Times.)
Isn’t the failure of Remington also the failure of the NRA?