HUNTSVILLE, Ala. — One of America’s oldest firearms makers, Remington, is nearing the end of a bankruptcy process that will see the company broken up and its divisions sold to different buyers.
The sales are expected to generate at least $155 million for the company to use to pay its creditors.
The bankruptcy hearing is unfolding in federal court in Decatur. The City of Huntsville, with a $12.5 million claim, is also seeking return of the company’s Huntsville facility, which was part of a now-defunct 2014 development agreement.
At the end of 2018, Remington employed about 450 workers. Under its deal with Huntsville and Alabama, it was supposed to have 1,000 workers at that point.
Remington, which was founded in 1816, held a court-supervised auction for its arms and ammunition divisions from Sept. 17-24. Court records show the top bidders were:
- Vista Outdoor – Lononke Ammunition business
- Roundhill Group LLC – non-Marlin Firearms business
- Sierra Bullets – Barnes Ammunitions business
- Sturm, Ruger & Co. – Marlin Firearms business
- JJE Capital Holdings — DPMS, H&R, Stormlake, AAC, and Parker brands
- Franklin Armory Holdings – Bushmaster
- Sporstman’s Warehouse – Tapco brand
While Remington’s court filings show it has reached agreements with some creditors, the last filing involving Huntsville indicated a deal had not been finalized with the city. In court filings, Huntsville said it’s February 2014 development agreement with Remington included providing the 843,715-square-foot building, and they advanced the sum of $12,500,000 to/or for Remington to pay for the costs of acquiring the Huntsville site and facility. The money was also intended to to pay for a portion of needed renovations on the property.
Huntsville said it signed a mortgage with the company for the property in March 2014. Huntsville also notes that in filings Remington has valued the collateral in excess of $61 million.