America's oldest gun manufacturer, Remington, has filed for bankruptcy after a weekend where millions of students marched across the us against gun violence in the wake of the Florida school shooting.
Remington Arms Co. filed for Chapter 11 bankruptcy in a DE court on Sunday to carry out a debt-cutting deal with creditors amid mounting public pressure for greater gun control.
Remington announced last month it planned to restructure $700 million in debt with its major creditors, as well as $145 million in new capital, so the company could continue manufacturing while in bankruptcy. According the New York Times, "Remington borrowed heavily during that time, including to buy out investors who wanted to leave".
It faced a slew of lawsuits after one of its Bushmaster rifles was used by Adam Lanza in the 2012 shooting at Sandy Hook Elementary School in Newtown, Connecticut. It's owned by Cerberus Capital Management, which plans to shed ownership once the bankruptcy is complete.
Remington is headquartered in Madison, North Carolina. Historically, gun sales drop under Republican leadership because there is less fear among gun owners of stricter gun legislation supported by Democrats.
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Remington, a company that began making flintlock rifles when there were only 19 United States, has filed for bankruptcy protection.
Remington was sued by victims' families after the Sandy Hook tragedy.
Panic sales that drove revenue for gun makers ever higher evaporated with Trump's arrival in the White House. "This 3% of the population owns half of the civilian guns in the USA", reports Youyou Zhou for Quartz.
The bankruptcy filing comes as the industry faces pressure over school shootings; thousands of students, educators and others participated in the March for Our Lives in Washington, D.C., and other cities over the weekend. Bloomberg has cited a research study conducted by Harvard and Northeastern universities that concluded that about half the guns in America are owned by only 3% of the adult population, with an average of 17 firearms each.