How Remington Went Bankrupt
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    Marlin Marksman
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    How Remington Went Bankrupt

    Here is an article from the New York Times Sunday Magazine detailing how Cerberus dumped its debt onto Remington and screwed over the town and workers of Huntsville, AL.

    https://www.nytimes.com/interactive/...untsville.html

    Sorry, just noticed that this was article was first shared in the General Forum.
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    Wall streeters have killed what makes America great for the love of money. Taxpayers are left holding the bag and the average worker gets the shaft with just enough to survive on.

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    I had always predicted when Remington lost the Walmart volume of guns they would be in serious trouble. Several years back Walmart made the corporate decision to remove guns from about 60% of their stores, they have sense recended that decision yet Remington was in serious trouble with- n 3 to 4 months of that decision. As I recall about 12 million $$ in gun orders were lost. Remington annual ammo business exceeds $28 million with Walmart.

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    Gun Wizard
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    Lengthy, but a good read.

    Corporate management, whether big or relatively small, is all the same. Back in 2009, I worked for an electronics company. With the economic downturn, we were losing business. The president of the parent company showed up at our facility in June of that year and flatly stated, "A--------- has never in it's history closed a plant due to an economic downturn." Naturally, all the employees were relieved.

    Come November of that year, we were told the plant was closing before the end of the year, and layoffs would start within the next 2 weeks. When questioned about the statement made in June, the response was, "A-------- has never closed a plant. But you work for C----------. We are not A------------."

    The plant was effectively closed the first of December, with a small crew remaining to clean up the plant and get equipment shipped to the company's main plant in Southern Idaho.
    It put roughly 40 people out of work, but the manager was given a position at the company headquarters.

    You've got to watch your back every minute.

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    Exclamation

    Quote Originally Posted by chocdog View Post
    I had always predicted when Remington lost the Walmart volume of guns they would be in serious trouble. Several years back Walmart made the corporate decision to remove guns from about 60% of their stores, they have sense recended that decision yet Remington was in serious trouble with- n 3 to 4 months of that decision. As I recall about 12 million $$ in gun orders were lost. Remington annual ammo business exceeds $28 million with Walmart.
    I suggest you READ the NY times article that was Posted by the OP. Remington's had a lot more problems than losing Walmart's business.
    Stephen Feinberg, co-founder and chief executive of Cerberus, set up a dummy corporation stole all the money and stuck Remington with the bill. Feinberg never had any intentions of running his gun companies as they had been run previously. It was nothing but a scam. He should be in Prison.



    Mike T.
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    As to the issue of the company running things down in Alabama - Cerberus appears to be intentionally using a strategy of sandbagging the place while the hiring requirements and other payback provisions are in effect.

    They manage the place in such a way that it causes lots of problems and results in high cost operations..... Then they go crying to the regulatory and business development guys... "Oh.. Things here are so hard... Business is bad.. Margins here in Alabama are way down from NY.... It's just too expensive for us to run here..... And sales are way down... We are having a really hard time meeting our obligations to you.... Please let us slide...." And guess what - those local guys see the problems.. They hear about the reputation of the place and the troubles they are having... And they see the people hired.... Sure, it's not 1,800 people, but 500 people are still making a good living and are paying taxes in the community... The company is "investing" $10+ Million a year in the place - but it just can't seem to turn the corner.... And they don't want to kick 500 of their own home town's people out of a job....

    Sure - the Huntsville business development guys probably know Cerberus is intentionally sandbagging the place and running it into the ground - But what are they going to do? Is Huntsville going to take receivership of a huge gun manufacturing plant and run it themselves? Would they own any of these brands themselves? What are their other options on the table? Do they have another company who could come in and take over the facility?

    Probably their only option is to try to weather the storm the best they can and keep the place there in town.... They do employ a lot of people.. And so it's in Huntsville's interest to keep the facility productive for as long as they can....
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    Gun Wizard
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    It's worth remembering that this article is way behind. Remington exited bankruptcy a full year ago. Those piles of debt piled to the sky by Cerberus are gone. So Cerberus got all the profit and all the creditors got socked with the bill.

    Once again another familiar strategy that these big holding companies are employing.
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    To me, this is what the Federal Government is supposed to protect against. Cerberus, et al, should be empty and all should be making small rocks out of big rocks. White collar crime really has no down side for most. Many make millions and get a fine for 1/10 of what they made. If they do go to jail, it is a country club kind of place and they don't stay there very long and when they get out their millions await them. I know I am supposed to let go of all that and allow God to straighten it all out, but sometimes that is quite hard.
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    We like to live well here in America. So, I suspect more companies will follow suit (the rich get richer and the poor suffers).
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