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The bankrupt arms manufacturer Remington Outdoor will be smashed and sold



Weapons maker Remington Outdoor will be smashed and sold after a multi-day bankruptcy auction in which seven different buyers won the company’s arms and ammunition bidding.

Sales of Remington’s ammunition and weapons business, the Remington brand and others will bring in at least $ 155 million to be used against the company’s debts.

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Remington’s lawyers did not respond to requests for comment on the results of the auction, which were partially revealed on Sunday in court cases.

Judge Clifton R. Jessup Jr. scheduled a hearing Tuesday at the U.S. Bankruptcy Court in Decatur, Alabama, to consider approving the results of the auction.

The auction is the culmination of Remington’s second bankruptcy in recent years. Huntsville, Alabama, filed for Chapter 11 bankruptcy protection in late July, saying it did not have the cash to make weapons to meet demand for its products.

VISTA OUTDOOR WINS REMINGTON AMMUNITION

The COVID-19 pandemic and civil unrest have forced Americans to stockpile weapons and ammunition, but Remington said he lacked funds, despite wiping out hundreds of millions of dollars in debt in 2018.

In this March 1, 2018 file, Remington’s name is engraved on a Model 870 rifle at Duke’s Sport Shop in New Castle, Pennsylvania (AP Photo / Keith Srakocic, File)

The company is facing a lawsuit for the marketing of the Bushmaster rifle, which was used in the killing of 20 children and six employees at Sandy Hook’s schools in Newtown, Conn in December 2012.

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The insolvency in 2020 stopped a lawsuit filed by the families of some of Sandy Hook’s victims, which was maintained during the first passage through Chapter 11.

Remington did not say what it would mean to seek to auction off its assets for the Sandy Hook lawsuit or for company retirees crowding into a session with insolvency administrators asking what would happen to their benefits.

FILE – In this photo file from March 1, 2018, a Remington light product hangs from the ceiling at Duke’s Sport Shop in New Castle, Pennsylvania (AP Photo / Keith Srakocic, file)

The biggest purchase purchased so far is the purchase of Vista Outdoor Inc. of Remington’s Lonoke’s $ 81.4 million munitions business. Sierra Bullets Inc. Missouri won the bid for another part of Remington’s munitions business, with a bid of $ 30.5 million, according to court papers.

Sturm Ruger & Co. will receive part of Remington’s arms business with a $ 30 million offer, while Roundhill Group LLC pays $ 13 million for other elements of the firearms industry. JJE Capital Holdings LLC buys H&R, Parker and several other brands of firearms.

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Sportsman’s Warehouse Inc. acquires the Tapco brand, according to court publications.

Franklin Armory Inc. from Nevada was declared the winning entrant in Remington’s Bushmaster brand. A spokesman for Franklin Armory was not immediately available Sunday to comment.

This article originally appeared in The Wall Street Journal.


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