[WSJ] Gun Maker Remington Preps for Bankruptcy, Seeks Sale to Navajo Nation

"Gun Maker Remington Preps for Bankruptcy, Seeks Sale to Navajo Nation":

https://www.wsj.com/articles/gun-ma...uptcy-seeks-sale-to-navajo-nation-11593186468

excerpt:

Firearms manufacturer Remington Arms Co. is preparing to file for chapter 11 protection for the second time since 2018 and is in advanced talks for a potential bankruptcy sale to the Navajo Nation, people familiar with the matter said.

The bankruptcy filing could come within days as the gun maker makes preparations for the Navajo Nation to serve as the lead bidder to purchase Remington’s assets out of chapter 11, these people said. Founded in 1816, Remington’s namesake weapons are mainstays in hunting, shooting sports, law enforcement and the military.

The Navajo Nation—a territory with roughly 175,000 people across parts of Utah, Arizona, New Mexico—could finalize a bid for Remington as soon as Friday, one of the people said. Any bid for the company would be subject to competing offers and require bankruptcy-court approval.

The timetable could be pushed back, and an offer from the Navajo Nation isn’t guaranteed to materialize, people familiar with the matter said.

The Navajo Nation, which explored buying Remington as far back as 2018, owns a set of business enterprises in industries including energy, transportation, and utilities. In 2019, a business owned by Navajo Nation purchased coal company Cloud Peak Energy’s mining assets out of bankruptcy.

***
Remington previously filed for chapter 11 in March 2018, transferring ownership from Cerberus Capital Management LP to creditors, including Franklin Resources Inc. and JPMorgan Chase & Co. Franklin remains the company’s largest shareholder, people familiar with the matter said.

The Navajo Nation and Franklin didn’t respond to requests for comment. Remington and JPMorgan declined to comment.

The company also continues to face litigation from families of victims of the Sandy Hook school shooting. Families of the Connecticut school killings filed wrongful-death claims against Remington, accusing the gun maker of producing and selling a weapon unfit for civilian use.

The Connecticut Supreme Court last year said that while the families couldn’t sue Remington for merely selling the Bushmaster XM15-E2S rifle used in the shooting, they could proceed on allegations the company improperly marketed the weapon to civilians for use in military-style combat against perceived enemies. Remington appealed the ruling to the U.S. Supreme Court, which declined to hear the case.

A bankruptcy sale would give a potential buyer the chance to purchase Remington free from legal liabilities, people familiar with the matter said.
​

Honestly I think this would be a great thing for Remington and the Navaho Nation; Remington products have been terrible for a long, long time, and with luck the Navaho might bring the company back to respectability. win-win.