Remington Files Chapter 11
 

I love my 1100 12 gauge but they told a lot of lies about the 700 triggers. Karma comes home.

very little innovation and complete lack of interest in producing quality finishes tells the story here.

This was a long time coming.... Surprised they held out this long!

700 million in debt :eek: !! No wonder , who fell asleep at the wheel ?

This has been talked about for quite some time. It gets them out from under several pending lawsuits and clears there way to move a more gun friendly location.

The outstanding item is the 700 triggers. The consensus is either they make good on replacement of the defective parts or no one will be buying anything from them again.

You guys are usually better than this.

The M700 trigger class action suit was settled a year ago. The plaintiffs' attorneys were unable to prove any of their claims. The attorneys did, however - in the finest American lawsuit fashion - manage to bilk their clients out of $12.5 million in legal fees. Remington is, of course, not paying that. The plaintiffs are.

Typical class action B.S. - the lawyers gin up a case, feeding on people who suffered an unspeakable tragedy (usually resulting in the death of a loved one). The lawyers promise two things: retribution against this big evil corporation that "caused" this tragedy, and some relief from their guilt by assuring them all fault lies with this big evil corporation.

As an aside, the fact of the matter is no one ever gets hurt if all rules of safe gun handling are observed at all times. Any gun should be able to randomly fire at any time without hurting anyone, because it should never be pointed at anyone. Pretty simple stuff. These people who killed family members with their M700's are 100% at fault - they were clearly pointing the gun at them when it fired.

Anyway, Remington agreed to replace some triggers, just to put an end to this nonsense. It was clearly going to drag on, quite pointlessly, for years. There was simply no evidence, nor could this "fault" ever be demonstrated. It was ginned up entirely by ambulance chasing lawyers looking to take advantage of Remington and several grieving families. They failed with the former, but succeeded with the latter. Typical lawyer scum.

So, no, Remington told no lies, this is not some form of karma, or any of that nonsense. This all boils down to one thing - Cerberus Capital Management. This mega-conglomerate bought Remington years ago. They immediately began doing what they do best - milking an established company dry. No investment in the company, resting on the laurels earned over two centuries of gunmaking, allowing the product line to stagnate, and the tooling to fall into disrepair. Remington's reputation has now been well and truly sullied.

At least now they can start rebuilding. Cerberus Capital Management is done ass raping them and will move on to their next victim.

Did Cerberus sell them?

No. They tried, but could not find a buyer. Remington was too thoroughly ravaged by the time they tried. Too much debt, too many liabilities, etc.

Remington was just fine until Cerberus bought them about a decade ago. Cerberus somehow managed to saddle them with about $1.0 billion in debt right out of the gate, a debt Remington had not previously held.

They will reorganize, and hopefully find a responsible buyer after the dust settles around this mess. I hope they have learned something.

Exactly the same kind of thing Mitt Romney’s old company used to do if I’m not mistaken - and what he personally excelled at doing...

You'd think there would be protection under law about this sort of thing but then people would complain it's a Socialist law or something like that.

How many good companies have been ruined by greedy bastards?

The private equity model
1. Buy a established company with unused debt capacity
2. Load it with debt
3. Pay a special dividend to the shareholders (that's the private equity firm) from the debt
4. Cut costs and raise sales
5. Sell or IPO the company at a higher valuation than the purchase

#4 and #5 are optional.

sometimes capitalism isn't in everyone's best interest.

That is pretty much the story of "Toys R Us".... and Bain Capital was heavily involved in that one...

Yep...seen it, lived it...#4 ain't optional though...cutting costs (job losses, outsourcing, offshoring, etc. are a given). Greed is good...for a few imo.

my kids never asked to go to Toys R Us. I think it's a different world these days. Video games are downloaded online and the few quality toys that are out there (Playmobil, Lego) are so easily bought online. When many of us were kids the only way you saw the latest Lego set was to actually go to Toys R Us. It was a wondrous experience wandering those aisles.

I think this is how Guitar Center works too. In fact, they compound the problem by just about giving stuff away, while always opening new locations. So they have the appearance of expansion and huge cash flow. But I sure would hate to look at a serious audit of their books.