The oldest firearms maker in the U.S. has filed for bankruptcy. Remington Arms dates back to 1816 with ammunition and gunsmith plants in Connecticut and New York.
Over the years gun sales have been choppy, driven largely by fear that new government regulations would make gun purchases harder. But those fears evaporated with the election of President Trump.
However, about half the guns in the U.S. are owned by just three percent of the population, which has made the gun industry unstable. Colt filed for bankruptcy in 2015 and Ruger’s stock has plummeted.
Remington makes the AR-15 Bushmaster, the gun used in the Sandy Hook Elementary shooting where 20 children and six adults were gunned down. Ten families of those killed are currently suing Remington in Connecticut’s Supreme Court. Lawyers in the case say the bankruptcy will not impact the suit in any material way.
Remington has lined up $100 million with lenders to continue operations. It remains unclear what will happen to its nearly 3,500 employees as the North Carolina-based company reorganizes.