Remington may face default

[tnyotehunter1]

http://www.philly.com/philly/blogs/inq- ... 71117.html

Remington Outdoor, the second-largest U.S. gunmaker has suffered a "rapid" and "sharp" deterioration in sales and a similar drop in profits since January, and faces "continued softness in consumer demand for firearms," credit analysts at Standard & Poor's Global Ratings said in a report Friday.



S&P as a result has cut the company's corporate credit rating — already at a junk-bond-level CCC+ — two full notches, to CCC-, a move likely to make the company's high-yield debt less attractive to investors and lenders, and force Remington to pay more in interest. The company could face a change in control, bankruptcy, or default on its debt by next year.

A backlog of unsold, unwanted firearms will force Remington to operate at a loss and "pressure the company's sales and profitability at least through early 2018, resulting in insufficient cash flow for debt service and fixed charges," unless Remington gives up cash to pay for ongoing operations, S&P adds.


Article continues below advertisement


S&P expects "a heightened risk of a restructuring" of Remington's $575 million senior secured loan and asset-based lending facility, which it is supposed to pay back in 2019.

If Remington defaults on its payments, based on the company's current value, S&P expects first-lien creditors may receive around 35 cents back from every dollar they have lent or invested. Lower-rated creditors would get back less, or nothing.

Default is not yet "a virtual certainty," the report added.



Published: November 20, 2017 — 3:01 AM EST

 

[Aquaholic]

They keep putting out junk no one wants

Sent from my LGLS775 using Tapatalk

 

[JimFromTN]

They can't make any money while Republicans are in charge. We have had 2 mass shootings in a short period of time and there has been no panic to buy up all the guns and ammo. Obama was the best thing for the NRA and the gun industry. He sold more guns and created more NRA members than Bill Clinton. If Hillary had gotten elected, the industry would be on fire and you'd be a fool not to have stock in Remington.

 

[Talome13]

Remington quality has been steadily declining for years

 

[Hardwoodmaterials]

I used to look at Remington first when looking for a new gun. They cut all the corners they could to up their profit margin, use the cheapest components they can get their hands on and the quality dropped way off so the experienced gun guys pass them by now unless they want an action to build on. With no accuracy guarantee of any kind the new guys that walk in the gun shop walk past them to look at the rifles that do for much less money. They have basically shot themselves in the foot!

 

[280longshot]

I must say that I agree with the quality going down and no accuracy guarantee. I have two Remington CDL'S that I hunt with. One will touch holes and the other I ended up putting a HS Precision stock on it to make it shoot accurate.
When I want a new rifle I no longer look at Remingtons anymore, it's a gamble.
My last two rifles have been Tikka's and one Savage 243 that will touch holes.
If I want to change calibers on the Savage I just order a new barrel, set head space, no gunsmith required.


Sent from my SM-G900V using Tapatalk

 

[REN]

Remington is junk all the way around. Sold out to the Walmart type stores and everything from clothes to ammo to guns all became below average at best. I don't care to own anything that has Remington on it which is sad because at one time they made fantastic guns and very good ammo.

 

[JimFromTN]

They still do, you just have to spend the money. You aren't going to get it by spending $375 at Walmart. The only thing worth anything on those rifles is the action and it will need to be trued. The reason Remington is having an issue has nothing to do with quality. The market has tanked.

 

[REN]

They still do, you just have to spend the money. You aren't going to get it by spending $375 at Walmart. The only thing worth anything on those rifles is the action and it will need to be trued. The reason Remington is having an issue has nothing to do with quality. The market has tanked.

We will agree to disagree I guess. Sure their high end guns are still decent but their ammo is crap and a lot of other gun makers make a VERY VERY good $500 rifle. Remington's low and mid range weapons are all so crappy it's almost laughable. Their reputation at one time was great now most any person you ask about them that knows anything about guns will say the same thing

 

[Coldfusion]

I didnt know remington went down hill so bad. Shame

Sent from my SM-N920V using Tapatalk

 

[jetwrnch]

I disagree with the $375 comment. So far I'd put my wife's $300 Savage Axis up against most new rifles twice the price. It isn't pretty and the stock is plastic, but it can shoot. I hear the Ruger American is good also, but I've never shot one. Remington was surviving on name recognition.

 

[infoman jr.]

I didnt know remington went down hill so bad. Shame

Sent from my SM-N920V using Tapatalk

I read on the internet that they couldn't even make payroll.

 

[Cotis]

I know that I won't buy anything from Remington. Their quality problem is like the Big 3 US automakers in the 80s/90s. It took them decades to recover along with government bail-out. That sure won't happen with a gun company...

 

[JimFromTN]

OK, I will be the stand up guy here. If anyone has any of these total garbage rem 700's or model 7's, I will take them off your hands for 25 cents on the dollar for blued, 50 cents on the dollar for stainless.

 

[Hunter 257W]

OK, I will be the stand up guy here. If anyone has any of these total garbage rem 700's or model 7's, I will take them off your hands for 25 cents on the dollar for blued, 50 cents on the dollar for stainless.

When you fill up your closet Jim, I'll take up where you left off! :mrgreen:

 

[348Winchester]

I have posted about this very topic before and have been derided terribly. As a gunsmith, I repair more Remingtons than any other brand by a wide margin. I love their older guns but their products of the last twenty five years are poor quality overall. No manufacturer can achieve perfection but quality can be achieved. Remington had it once but no longer does.

 

[vonb]

I love my Remingtons with all of their warts. The older ones felt smoother with their jeweled bolts and there's something about a wood stock. The matte finish on the newer blued models feels like I'm filing my fingernails when running the bolt. 5,000 cycles later, they smooth up. After discovering Tikka, Sako and others, I'll pass on purchasing a new Remington. Heck, I even went and bought a Salvage and never thought I'd stoop that low. Accuracy and swapping barrels at home speaks volumes.

 

[rem270]

I love Remington guns and will continue to buy them. I try to find older Remington's just as I do any other brand. They may have skimped a little but Browning, Savage, and all others are too, not just Remington.

 

[MUP]

I have to say, even tho the plastic stocks leave about everything to be desired, my Mod 710 and my daughter's Mod 770 shoot great. I haven't even replaced the factory stocks, yet. Still have my Dad's old Mod 742 from back in the 70's as well, and it still shoots great as well. I like fit and finish as well as most I suppose, but my main concern is reliable function and accuracy, and of that I have no complaints.

 

[drrxnupe]

They can't make any money while Republicans are in charge. We have had 2 mass shootings in a short period of time and there has been no panic to buy up all the guns and ammo. Obama was the best thing for the NRA and the gun industry. He sold more guns and created more NRA members than Bill Clinton. If Hillary had gotten elected, the industry would be on fire and you'd be a fool not to have stock in Remington.

Henny Penny got shot so the sky is no longer falling.

 

[go_okfishin]

I love Remington guns and will continue to buy them. I try to find older Remington's just as I do any other brand. They may have skimped a little but Browning, Savage, and all others are too, not just Remington.

Me too. Been a Remington fan since the 70's. I have the new Versa Max and the V3 along with several 1187s and 870s. Only problem I ever had was an 1187 Supermag jamming but it turned out to be an easy fix. Easy to get parts and work on.

 

[JimFromTN]

I have owned 2 870's, an 1100, and 8 700's. I never had an issue with any of them. I have had issues with a Ruger 10/22, old army, m77, and an OU. I have also had issue with a Browning BAR and a Buckmark.

 

[Hardwoodmaterials]

I have owned more than a few rifles with most being Rem. 700's and I have only had to send back two rifles ever. One was a Savage 10 and they fixed the issue and had it back in about 2 weeks or so. The other rifle was a Ruger M77 that couldn't hold a 6 inch 3 shot group at 100yds and after multiple scope/rings/base swaps and multiple trips back to the factory with me paying shipping every time they never did fix it. They finally just told me that all they guarantee is it will shoot when you pull the trigger not that it will shoot straight! Needless to say I no longer buy anything with Ruger stamped on it.

Right now I own a cabinet full of Remington shotguns and mod. 700 rifles, no Remington rifle triggers, but if you can't see that the quality has fallen off badly you are either in denial or brand blind!

 

[REN]

I think some are mixing older Remington's which are good and most of their 700 line which is also good with all their newer stuff which is crap. Anyone that has owned an 870 that is old and looked at the new ones can't deny the quality difference.

Yes all gun companies have cut corners in the last few years but seems IMO Remington took it to a new level. They really really missed an opportunity in the low end rifle market to save face

 

[RUGER]

. Anyone that has owned an 870 that is old and looked at the new ones can't deny the quality difference.

I bought a new 870 Super Mag 2 years ago.
I hear ya on that!

 

[JimFromTN]

You can't compare the 870 express to the standard 870 magnum. The express is an econo model which when they came out were half the price of the standard 870 magnum. The super mag is just an 870 express chambered in a 3.5 inch shell. The 700 adl's that you get at walmart and academy are econo models as well which is why they are half the price of average 700.

 

[UpperTully]

They still do, you just have to spend the money. You aren't going to get it by spending $375 at Walmart. The only thing worth anything on those rifles is the action and it will need to be trued. The reason Remington is having an issue has nothing to do with quality. The market has tanked.

I have a $375 Ruger Predator I'd put against any factory rifle twice it's worth.

I disagree with the market tanking. I'm on numerous groups on Facebook, everyday I see new rifles being bought. To many people going with the budget and long range rifles. Lot of money being spent on accessories. I've personally spent over $2k on new guns since Oct. That's not typical with me. They're just not Remington's because the market is flooded with better options. I don't foresee myself buying any new Remington's in the future either.

 

[TNRifleman]

Maybe the new magazine fed 870 will pull them up out of the tank. Should go over well with the tacticool crowd.

 

[JimFromTN]

They still do, you just have to spend the money. You aren't going to get it by spending $375 at Walmart. The only thing worth anything on those rifles is the action and it will need to be trued. The reason Remington is having an issue has nothing to do with quality. The market has tanked.

I have a $375 Ruger Predator I'd put against any factory rifle twice it's worth.

I disagree with the market tanking. I'm on numerous groups on Facebook, everyday I see new rifles being bought. To many people going with the budget and long range rifles. Lot of money being spent on accessories. I've personally spent over $2k on new guns since Oct. That's not typical with me. They're just not Remington's because the market is flooded with better options. I don't foresee myself buying any new Remington's in the future either.

Ruger's revenues are down 35% over the last year. Their net income is down 52%. All of the gun manufacturers have taken a major hit over the last year. Companies like Remington and Ruger who invested heavily in AR's are taking a major hit because the market is glutted with them and there is no sign of any foreseeable gun control legislation to send the public into a panic to help sales.

 

[UpperTully]

They still do, you just have to spend the money. You aren't going to get it by spending $375 at Walmart. The only thing worth anything on those rifles is the action and it will need to be trued. The reason Remington is having an issue has nothing to do with quality. The market has tanked.

I have a $375 Ruger Predator I'd put against any factory rifle twice it's worth.

I disagree with the market tanking. I'm on numerous groups on Facebook, everyday I see new rifles being bought. To many people going with the budget and long range rifles. Lot of money being spent on accessories. I've personally spent over $2k on new guns since Oct. That's not typical with me. They're just not Remington's because the market is flooded with better options. I don't foresee myself buying any new Remington's in the future either.

Ruger's revenues are down 35% over the last year. Their net income is down 52%. All of the gun manufacturers have taken a major hit over the last year. Companies like Remington and Ruger who invested heavily in AR's are taking a major hit because the market is glutted with them and there is no sign of any foreseeable gun control legislation to send the public into a panic to help sales.

I just looked at the numbers and I stand corrected, I never even considered the AR demand right now. It does seem the AR demand has bottomed out. I don't see a decrease in the demand for budget long range shooting rifles. Seems Ruger and Savage are out front in that market. Everyday, I see a large response of people buying and showing interest in them. Perhaps, everyone has their AR and the demand has shifted?