Every so often, shocking news breaks about a well-known company filing for bankruptcy. Remington remains a popular fixture in Texas gun stores and around the United States, yet the company recently filed for Chapter 11 bankruptcy protection.
Chapter 11 bankruptcy is a form of reorganization bankruptcy. The process allows a business to remain in operation while paying creditors. Usually, Chapter 11 bankruptcy assists partnerships and corporations, but individuals may also explore its protections.
Assumptions that Remington will “go out of business” may be premature. The bankruptcy filing could provide Remington a lifeline; it did so before as the ammunition company filed Chapter 11 bankruptcy in the past. The current filing marks the second bankruptcy filing in a little over two years. In addition, Remington recently made headlines in business periodicals due to talks about a sale. Reportedly, the Navajo Nation intends to purchase the company.
News about the company’s impending bankruptcy may be surprising considering recent record ammunition and firearm sales. A point here is such sales are “recent,” and Remington’s fiscal troubles likely date back a long time. Also, high sales figures are spread across many different companies, so Remington’s take doesn’t appear to be enough to dig it out of excessive debt.
The Remington name maintains a lengthy history in hunting and sports shooting. Originally founded in 1816, the company stands as the oldest firearms company in the United States. Name recognition and brand loyalty contributed to its long-standing success, but legal troubles created debt woes for Remington. High-profile lawsuits and class-action settlements come with costs.
An attorney may advise a business on how to approach a Chapter 11 filing and explain various aspects of business law to board members and partners. The attorney might also offer insights into how to cut down on debt or deal with creditors. An attorney may be able to seek actions against a creditor that harasses a client.