Remington Files for Bankruptcy as Sales Explode
Welp. Gun sales have been booming so far in 2020 as civil unrest continues and more and more folks are worried about their personal safety.
All the while, gun manufacturer Remington Arms Co. announced yesterday that they have filed for bankruptcy protection for the second time since 2018, bogged down by more debt than the company is able to pay.
The company has struggled with high interest costs as well as litigation costs after the 2012 Sandy Hook Elementary School massacre, in which the killer used a Bushmaster AR-15, manufactured by Remington.
The American firearm industry tends to fluctuate based on who is in office. When Obama took office, firearm sales increased as enthusiasts became worried about possible regulations on the horizon. However, sales went down when President Trump entered office as he took a hard stand on defending gun rights and ultimately eased concerns over regulations.
However, demand has once again soared since March 2020 according to FBI background checks for civilians looking to purchase guns. In fact, these background checks are at the highest they've been since the FBI began conducting checks 20 years ago.
The question here is how can a company that has been a household name in the gun community for more than 200+ years be filing for bankruptcy for the 2nd time in 3 years?
Is there something else going on that we don't know about?
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