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While owned by Cerberus Capital Management, the conglomerate of 13 brands accumulated almost $1 billion in debt. The company emerged from bankruptcy in May, converting more than $775 million in debt into equity. “This could prompt further such suits not only for cases of mass shootings, but individual ones as well,” he said. The ruling could spur similar suits in other states, he added. The ruling brings “increased cause for concern among firearms manufacturers, who are long believed to have been shielded from such litigation since 2005,” when Congress passed the PLCAA, said Rommel Dionisio, an analyst at Aegis Capital Corp. The statute, backed by the National Rifle Association, has helped the industry defeat similar cases, with the Sandy Hook suit perhaps the highest-profile example. The company had argued that the Protection of Lawful Commerce in Arms Act, or PLCAA, bars lawsuits holding gun companies responsible for crimes committed with their products. “While all this decision does is allow a case to go forward, in broader terms it really opens up a new avenue for holding gunmakers responsible.” “This is a landmark and potentially historic ruling,” said Adam Winkler, a UCLA Law School professor who specializes in constitutional law. While Remington is one of the more high-profile companies in the Cerberus profile, the firm also backs several other notable businesses in the B2B and B2C spaces.Just by getting the suit to trial, the families hope to gain access to gunmakers’ internal communications, which may aid others seeking to pursue similar suits growing out of gun violence. Took the plunge last week, while Bain Capital portfolio companies Toys R Us and iHeartMedia haveĮncountered their own issues with heavy debt. Remington becomes the latest PE-backed US retailer to file for bankruptcy. It's possible a concurrent decline in sales for Remington made it increasingly difficult to meet its hefty debt obligations. While the number of firearm background checks conducted in the US rose steadily between 20, according to FBI data-a statistic that's frequently used as a proxy for gun sales, which aren't tracked-the number of background checks dipped significantly in 2017. Cerberus again tried to break off its investment in 2012, after a shooter used one of Remington's products to murder 20 children and six adults at Sandy Hook Elementary School in Connecticut, but the firm didn't find a buyer. Remington was founded in 1816 and purchased by Cerberus in 2007, part of a deal that combined the company into a larger entity called Freedom Group.Ĭerberus first sought an exit from the company nearly a decade ago, filing for an IPO in 2009, but Freedom Group pulled the offering in 2011 after a reported decline in sales. Earlier reports had indicated nearly $1 billion in debt. The bankruptcy plan will allow Remington to continue operating and lists liabilities of between $100 million and $500 million. The latest filing occurred Sunday night, a day after marches in favor of gun control took center stage across the US. The company first announced plans for the restructuring last month, reaching an agreement to cut its debt load by some $700 million and inject the company with $145 million in new capital. Remington Outdoor, a maker and dealer of guns and other arms that's been mired in controversy under the ownership of Cerberus Capital Management, has officially filed for Chapter 11 bankruptcy protection.