Remington Arms, one of the largest US firearms manufacturers and builder of such iconic military weapons such as the Colt M4 Assult Carbine, the M24 Sniper Weapon System, M1917 Enfield, and the Browning M1917 Water-cooled machine gun, announced on February 13, 2018, that it has reached a deal with creditors that will allow it to file for bankruptcy to slash its $950 million debtload. The agreement grants Remington $145 million in bankruptcy financing to fund the company through the Chapter 11 process. Remington plans to file bankruptcy in US Bankruptcy Court in Delaware, seeking to write off about $700 million in debt. Business operations including employee wages and benefits and payments to trade creditors will continue as usual through the bankruptcy, the company said. Colt, a well known competitor of Remington, emerged from bankruptcy in 2016 following a dip in sales after the loss of military contracts and falling sales in sports rifles. Remington was abandoned by some of its investors after one of its Bushmaster rifles was used in the 2012 Sandy Hook elementary school shooting. is seeking to file for bankruptcy and is looking for debtor-in-possession financing from banks and credit investment funds.
Controlled by buyout firm Cerberus Capital Management LP, the move to bankruptcy follows the reaching of a forbearance agreement with its creditors this week following a missed coupon payment on its debt—reportedly to be in the range of $950 million. Remington’s sales plunged 27 percent in the first nine months of 2017, resulting in a $28 million operating loss.