Remington Outdoor – the 200-year-old gun maker that filed for Chapter 11 bankruptcy protection in July this year – will be divided and sold, based on a filing in the northern district of Alabama.
Seven different buyers have secured the bidding for portions of the group's weapons and ammunition assets, sales of which will bring in around $155 million to be used against the U.S. gun manufacturer's financial dues.
Among the successful bidders are Sturm Ruger, Vista Outdoor, Sportsman's Warehouse, and Sierra Bullets. vista Outdoor snagged the biggest sale, which disclosed it will shell out $81 million for Remington's brand and trademarks.
According to Chris Metz, Vista chief executive officer, Remington's ammunition and accessories have "a storied role in America's sporting heritage, with a legacy dating back to 1816," SGB Media quoted the CEO as saying in a statement.
Outdoor gear retailer Sportsman's Warehouse will buy the Tapco brand of firearm accessories and parts. Franklin Armory, the Nevada-headquartered gun manufacturer, will take over Remington's Bushmaster Rifle brand, documents showed.
Attorneys for Remington have yet to respond to comment requests with regards to the sale results, which were partially made public in court filings on Sunday.
The auction is the peak of Remington's second bankruptcy in recent years. The company said it is no longer financially capable to make guns to meet the demand for its products.
Cerberus Capital Management bought Remington in 2007, and the company accumulated almost $1 billion in debt. Remington previously announced it had $438 million in sales in 2019, nearly 50 percent its sales three years prior.
It's not yet clear how the projected sales will impact a lawsuit that the Huntsville, Alabama group is facing over the marketing of its Bushmaster rifle, which was used in the killing of 20 children and six school staffers at Sandy Hook Elementary School in Connecticut in 2012, the Wall Street Journal reported.
