Gun maker Remington files for bankruptcy for the second time

Attendees look at a display of Remington shotguns during the NRA Annual Meeting & Exhibits at the Kay Bailey Hutchison Convention Center on May 5, 2018 in Dallas, Texas. The National Rifle Association’s annual meeting and exhibit runs through Sunday.

Justin Sullivan | Getty Images

Remington, which bills itself as America’s oldest gun manufacturer, has filed for Chapter 11 bankruptcy protection for the second time in just over two years.

The filing comes just days after the apparent collapse of talks between the company and the Navajo Nation, which reportedly was considering purchasing Remington’s assets in a prepackaged bankruptcy that would have allowed the company to shed its liabilities. It was unclear from the bankruptcy filing late Monday whether the company had found an alternative buyer.

Remington previously filed for bankruptcy in 2018, citing declining sales. It emerged two months later in control of its lenders including Franklin Resources and JPMorgan Chase. But sales apparently never sufficiently rebounded despite a surge of interest in guns due to the Covid-19 pandemic and nationwide social unrest this year.

The company has also been hobbled by product liability issues including lawsuits stemming from the 2012 shooting at Sandy Hook Elementary School in Connecticut, as well as longstanding allegations — denied by the company — of product safety issues with its popular Model 700 rifle, which CNBC has been investigating since 2010.

The new filing, in the United States Bankruptcy Court for the Northern District of Alabama, lists assets and liabilities of between $100 million and $500 million. It also lists a division of Schultze Asset Management, which specializes in distressed companies, as a major shareholder.

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