A major American gunmaker embroiled in controversy reportedly plans to file for bankruptcy - and Trump's election may have been the final nail in the coffin
AP Photo/Jessica Hill
- Remington Outdoor Co., one of the largest and the oldest gunmaker in the US, is planning to file for bankruptcy protection, Bloomberg reports.
- The gunmaker has faced criticism following a class-action lawsuit that claimed an allegedly defective Remington rifle resulted in at least two dozen deaths.
- Remington's sales also took a hit after President Donald Trump beat Hillary Clinton in the 2016 presidential election.
Remington Outdoor Co., the oldest gunmaker in America, is reportedly planning to file for bankruptcy protection.
The company has reached a deal to give lenders ownership over the firearms maker, Bloomberg reported on Monday. Last week, Reuters reported that Remington had reached out to banks and credit investment funds in an attempt to acquire the funding necessary to file for bankruptcy.
In recent years, Remington has faced serious backlash after accidents and violent incidents related to the company's guns.
Thomson Reuters
In 2014, Remington settled a class-action lawsuit, agreeing to replace the triggers on 7.5 million allegedly defective guns free of charge. While Remington maintains that the guns are safe, the lawsuits linked the guns "to hundreds of serious injuries and at least two-dozen deaths," CNBC reports.
The company also faced backlash after a Remington rifle was among the weapons in the arsenal used in the Sandy Hook Elementary School shooting in 2012. Twenty-six people were killed in the shooting in Newtown, Connecticut.
Bloomberg reports that a final nail in Remington's coffin may have been a counter-intuitive one: the election of President Donald Trump.
Trump's candidacy was supported by the National Rifle Association, and his two eldest sons are hunting enthusiasts. However, firearms sales fell after Trump's election.
"Hillary Clinton's defeat meant customers became less worried about losing access to weapons," Bloomberg reported. "Sales plummeted, and retailers stopped re-ordering as they found themselves stuffed with unsold inventory they'd built up in anticipation of a Clinton presidency."
The Future of Retail 2018 by the BI Intelligence Research Team.
Get the Slide Deck Now »
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market