What happened with Remington filing for bankruptcy? Why did Remington file for bankruptcy?

Remington files for bankruptcy

Remington, an American gun manufacturer with a history of more than 200 years, filed for bankruptcy on the same day and worked to restructure its huge debts.

"The Board of Directors believes that it is wise and in the best interest of the Company that it has filed or will file for voluntary bankruptcy protection under Chapter 11," the bankruptcy filing states.

Reports said Remington had announced it would file for bankruptcy two days before the February case in Parkland, Florida. According to Remington, the debt restructuring agreement will allow the company to reduce its consolidated debt by approximately $700 million and inject $145 million into its operating subsidiaries.

It is reported that the weapons manufacturer had expected Hillary Clinton to win the US presidential election and was worried that stricter gun control would trigger a buying spree, so it increased production. However, after Trump took office, people's motivation to buy guns decreased, plunging Remington into a financial crisis.