After filing for bankruptcy in 2018, Remington Arms is again filing for Chapter II protection. Despite an estimated 400% surge in gun sales this year, the North Carolina gun maker is struggling after sales negotiations broke down between Remington and the Navajo Nation. The Navajo Nation had been in talks to purchase Remington.
According to court filings, Remington has liabilities and assets between $100 million and $500 million. In the past several years, increased volatility and mass shootings have prompted retail chains to restrict gun and ammo sales. Some retailers have completely removed guns from their stores. Prior to the recent increase in sales, gun sales had slumped as gun owners anticipated that Congress might tighten gun control laws and guns became less available due to retailer restrictions.
Remington’s bankruptcy also coincides with a lawsuit filed in 2016 by families of the victims in the Sandy Hook school shooting in 2012. The lawsuit is set to go to trial in late summer of 2021. It claims that Remington was negligent in the sale of the weapon used in the Sandy Hook massacre. The victims’ families state that Remington marketed its AR-15 style weapon, the Bushmaster XM15-E2S, to civilians.
From lawsuits to restricted sales of products and services, there are many factors that can push a company into bankruptcy and many options in regard to filing for bankruptcy protection. Filing for commercial bankruptcy is a complex process. An experienced commercial bankruptcy lawyer may help a business owner explore their options in regard to bankruptcy protection. In some cases, businesses file for bankruptcy protection and survive, depending on the type of bankruptcy filed.