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Gun-maker Remington going bankrupt

by Lynde Langdon
Posted 3/26/18, 12:47 pm

Remington, the U.S. gun-maker with a history dating back to 1816, filed for Chapter 11 bankruptcy protection Sunday, citing mounting debts and declining sales. Several trends contributed to the company’s downfall, including the consolidation of gun ownership in the United States. A recent study by Harvard and Northeastern universities found 3 percent of the population owns half of the country’s guns, making the market volatile. Gun sales also fell dramatically during the first year President Donald Trump was in office, possibly because of the perception that guns would remain widely available during his presidency. In 2017, firearm background checks declined more than any year since 1998, according to the FBI. Remington makes the Bushmaster AR-15 rifle that was used in the mass shootings at Sandy Hook Elementary and Marjory Stoneman Douglas High School. The North Carolina–based company has secured financing to continue its operations during bankruptcy, but how it will reorganize and move forward remains unclear.


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Lynde Langdon

Lynde is a WORLD Digital assistant editor and reports on popular and fine arts. She lives in Wichita, Kan., with her husband and two daughters. Follow Lynde on Twitter @lmlangdon.

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Comments

  • OldMike
    Posted: Mon, 03/26/2018 03:10 pm

    I doubt any of Remington’s or subsidiary Bushmaster’s AR-style rifles made up a major share of the company’s sales. 

    However, Remington has long had major shares of the hunting/sporting shotgun market—the 870 pump shotgun series; the hunting/target rifle market—700 series; and ammunition sales. I believe their shotgun and ammunition sales have particularly been hard hit by cheaper but acceptable quality import products. As for hunting rifles, improved manufacturing technology has made it possible for several competing domestic companies to bring out lines of hunting rifles that are quite a bit cheaper than Remington’s Model 700 series. 

    You have to change with the times, rather than hope to continue with what was successful in the past. 

    That applies to every business. Montgomery Ward was once mighty among retailers, Oldsmobile once had the best selling model in the US, Crosley was once the most innovative home appliance maker. 

  • Greg Browning
    Posted: Mon, 03/26/2018 04:39 pm

    Maybe Remington expected Hillary to win the presidency and take over Mr. Obama's position as Gun Salesman of the Year.  If the NRA was really only concerned about guns sales, based on the previous 8 years, one would think they would lobby for a Democrat in the White House. Recreational rifle and pistol shooting was almost impossible for most of the Obama years due to scarcity of ammunition.  People were hording out of fear and the Federal government was buying multi-millions of pistol cartridges (and I never heard a good reason why), along with a war in the Middle East.  Gun manufacturers had to expand to meet the demand.  It may be catching up with them now.  Elections have consequences.  

  • Bob C
    Posted: Tue, 04/24/2018 02:35 pm

    I think that gun manufactures made the mistake of thinking the fear driven buying was the norm, which it was not in the Obama years. Also the sport/hobby of hunting has decreased in demand. In 1970 over 40 million plus Americans purchased hunting licenses, today it is just over 12 million.

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