September 29, 2020
Things are shaking out quickly in the Remington Outdoors Company bankruptcy situation, with a recent court filing revealing the top bidders for a number of the company’s properties.
While the United States Bankruptcy Court for the Northern District of Alabama still has to approve the winning bids, here’s what we know so far, according to the court filing.
Sturm, Ruger & Company, Inc. was the successful bidder pursuant to the terms of the asset purchase agreement for the Marlin Firearms business, with Long Range Acquisition LLC as the backup bidder. For non-Marlin firearms business, Roundhill Group, LLC was the successful bidder, with Huntsman Holding LLC and Century Arms Inc. as backup bidders.
In the ammunition category, Vista Outdoor, Inc. was the successful bidder pursuant to the terms with respect to the Lonoke Ammunitions Business and certain IP assets. Sig Sauer was the backup bidder.
Also concerning ammunition, Sierra Bullets, LLC was the successful bidder pursuant to the terms of the asset purchase agreement with respect to the Barnes Ammunitions Business. Barnes Acquisition LLC was the backup bidder.
Other winning bidders revealed in the bankruptcy court filing included JJE Capital Holdings, LLC with respect to DPMS, H&R, Stormlake, AAC, and Parker brands; Franklin Armory with respect to Bushmaster, and Sportsman’s Warehouse, Inc. for the Tapco brand.
One Ilion, Illinois, New York, Remington employee, who asked not to be identified, told local news station WIBX that he is nervous, saying, “It looks like we're being purchased by another investment firm, and based on past history, that has a lot of us very worried."
According to a report in The Wall Street Journal, the sales are expected to bring in at least $155 million that will be applied to Remington’s debts. The company filed for bankruptcy in July as it struggled with weak sales after a 2018 restructuring.
“At the Sale Hearing, the Debtors will seek Bankruptcy Court approval of the Successful Bids,” the court filing concluded. “Unless the Bankruptcy Court orders otherwise, the Sale Hearing shall be an evidentiary hearing on matters relating to the Sale Transactions and there will be no further bidding at the Sale Hearing.
“In the event that a Successful Bidder cannot or refuses to consummate its applicable Sale because of the breach or failure on the part of such Successful Bidder, the respective Backup Bidder to such Successful Bidder will be deemed the new Successful Bidder as to the applicable Acquired Assets and the Debtors shall be authorized, but not required, to close with such Backup Bidder on its Backup Bid without further order of the Bankruptcy Court.”
Freelance writer and editor Mark Chesnut is the owner/editorial director at Red Setter Communications LLC. An avid hunter, shooter and political observer, he has been covering Second Amendment issues and politics on a near-daily basis for the past 20 years.