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Moorlander

Remington gone bust.

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It's important to realise that a company being declared "bankrupt " in the US is rather different to the UK (from what I understand) or here in NZ.  That status is less dire in the US, ie, there is still a chance of survival.

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Aware of that but it still does not bode well, the logistics of their vast product range must be difficult to manage ,maybe it would be better for all if they dropped their low end junk and concentrated on some quality products.

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Donald Trump has been chapter 11 bankrupt a few times, doesn't seemed to have done him any harm

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On 27/03/2018 at 7:36 AM, Chris-NZ said:

It's important to realise that a company being declared "bankrupt " in the US is rather different to the UK (from what I understand) or here in NZ.  That status is less dire in the US, ie, there is still a chance of survival.

Yes, as Remington have not actually declared bankruptcy or gone bust.  What they've done is to protect themselves from any creditors declaring them bankrupt (and hence sinking their company) .  In the USA, declaring "Chapter 11" protects them from this.  It's not as big a deal as it seems, and has been done numerous times in the past during hard times.  Look at a list of companies that have come close to bankrupcy...these include Apple (1997), General Motors (2008, who also declared Chapter 11), and Sbarro who declared Ch11 in order to re-organise in 2011.  They've all gone on to do rather well...

In practical terms, filing for Ch11 means that they've declared that their current assets are worth less than they owe to creditors, but are also undertaking to repay their debts within a certain timeframe, in this case possibly with some injection of cash from other investors.  If they fail to do this, then they can be declared bankrupt but not until then.  Without this declaration they could be declared bankrupt, broken up and assets sold off.  Unfortunately for Remington, the LA shootings did them no favours, really rather unfairly so when all the facts are examined...

 

 

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