Post by daleko on Feb 9, 2018 19:01:47 GMT -5
A really piss poor job by Remington senior mgt and, by extension, their owner, Cerberus.
Report: Gunmaker Remington considers bankruptcy
Remington Outdoor Co., the firearms giant owned by private equity firm Cerberus Capital Management, is speaking with lenders about a prepackaged bankruptcy filing, according to Reuters.
Why it matters: This might be the merciful end to an albatross of an investment for Cerberus, which over-leveraged, over-consolidated and completely misjudged political and reputational risk. It also could put jobs at risk for some of the company's 3,000-plus employees.
Cerberus declined comment, via a spokesman.
Bottom line: "Remington’s sales plunged 27% in the first nine months of 2017, resulting in a $28 million operating loss... [They] have declined in part because of receding fears that guns will become more heavily regulated by the U.S. government, according to credit ratings agencies."
Presidents Obama and Trump had very different views toward private gun ownership, but gun manufacturers may be pining for the one who was much more critical of their industry:
Remington Outdoors, the country's largest gun-maker, has become unprofitable in 2017. The privately-held company reports a $60.5 million net loss through October 1 on $467 million in revenue, compared to a $19.1 million gain on $644 million in revenue for the first nine months of 2016. It also reported a whopping 78% drop in EBITDA between the third quarters of 2016 and 2017, causing downward pressure on its bond prices.
Report: Gunmaker Remington considers bankruptcy
Remington Outdoor Co., the firearms giant owned by private equity firm Cerberus Capital Management, is speaking with lenders about a prepackaged bankruptcy filing, according to Reuters.
Why it matters: This might be the merciful end to an albatross of an investment for Cerberus, which over-leveraged, over-consolidated and completely misjudged political and reputational risk. It also could put jobs at risk for some of the company's 3,000-plus employees.
Cerberus declined comment, via a spokesman.
Bottom line: "Remington’s sales plunged 27% in the first nine months of 2017, resulting in a $28 million operating loss... [They] have declined in part because of receding fears that guns will become more heavily regulated by the U.S. government, according to credit ratings agencies."
Presidents Obama and Trump had very different views toward private gun ownership, but gun manufacturers may be pining for the one who was much more critical of their industry:
Remington Outdoors, the country's largest gun-maker, has become unprofitable in 2017. The privately-held company reports a $60.5 million net loss through October 1 on $467 million in revenue, compared to a $19.1 million gain on $644 million in revenue for the first nine months of 2016. It also reported a whopping 78% drop in EBITDA between the third quarters of 2016 and 2017, causing downward pressure on its bond prices.
