Firearms producer Remington Outdoor Company has submitted for bankruptcy protection in the face of dropping sales and lawsuits stemming from your 2012 Sandy Hook Elementary College shooting, the Wall Street Journal documented Sunday night.
According to the Journal, Remington announced that it would file for Chapter eleven last month but the actual submitting was delayed after the Feb. fourteen shooting at Marjory Stoneman Douglas High School in Parkland, Fla. that will killed 17 people.
The paper documented that Remington officials plan to give over the reins to its lenders in exchange for writing off the majority of the company’s debt. Cerberus Capital Administration LP bought Remington for $118 million in 2007, assuming $252 million in debt in the process.
Cerberus later produced a holding company called the Independence Group Inc., consisting of Remington as well as other firearms manufacturers — including Bushmaster, which Cerberus had purchased within 2006.
The Record reported that the gun industry is certainly facing low demand and higher stock after Donald Trump’s unforeseen election to the presidency in 2016. According to the paper, firearms manufacturers increased output in the run-up to the selection, expecting that a Hillary Clinton success would lead to a boost in product sales ahead of tighter gun laws.
In 2016, families of the Sandy Hook sufferers filed a wrongful-death suit towards Remington, claiming that it had negligently marketed “military-style” weapons to youthful demographics — namely, 20-year-old Exotic Hook gunman Adam Lanza.
A trial determine dismissed the initial lawsuit, but the injured parties appealed to the Connecticut Supreme Courtroom, which is considering the matter.
Katie-Mesner Hage, a lawyer with Koskoff Koskoff & Bieder, which represents Sandy Hook family members in their lawsuit against the gun producer said in a statement that “ We do not expect this submitting to affect the families’ case in different material way. ”
Founded in 1816, Remington is America’s oldest weapon maker.