I would never have believed that Remington, America's oldest gunmaker, would ever find it necessary to file for bankruptcy (https://www.reuters.com/article/us-remington-bankruptcy/u-s-gunmaker-remington-files-for-bankruptcy-idUSKBN1H204F). But it has.
If you can't defeat the Second Amendment, destroy its purveyors. This has long been one of the strategies of the left. Force gun manufacturers into bankruptcy through never-ending litigation.
As far as declining sales, I will say that Remington has not really kept up very well with industry trends.
to sad
i liked the 870 model 8)
when is the march for our guns (manufacturers) :dreamer:
Quote from: MikeGER on March 26, 2018, 09:10:54 AM
to sad
i liked the 870 model
Remington was bought by some financial company some years ago, which was plundering it while it could. The new management didn't know anything about guns and did not manage it well. The R51 was a disaster. I like my 870 too, but I've heard that what is being produced now is junk. That's why I bought a Mossberg a couple of weeks ago.
What Trailrunner said is accurate. Remington was a leveraged buyout with a huge debt load. When you get in that position, you must have huge revenues to make your debt payments. Toys r us has the identical problem.
We have a structural tax code issue. Firms can deduct interest payments from revenues as a cost, but not dividends. Payment of dividends also requires cash.
If dividends were deductible as a business expense while all dividends were fully taxable as ordinary income to individuals, then the tax incentive to load up on debt would be greatly reduced. We would have less incentive for highly leveraged buyouts which bankrupt otherwise healthy firms.
And don't we need to look at gun sales overall before attributing this to any sort of malice? I am not sure the article was accurate drawing a straight line from gun protests to the Remington bankruptcy.
Quick search:
https://www.washingtonexaminer.com/2017-is-second-biggest-year-for-gun-sales-ever-might-top-2016/article/2627883
The competition in the market is just crazy - Turkey seems to be making firearms for a number of companies - most I never heard of, but then again I'm not staying in touch with all of the developing trends. I loved my Remington 870 - it was a great for just about everything.