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JJE Capital Holdings LLC is the holding company for Palmetto State Armory (JJE's CEO is the Founder of Palmetto (PSA)) and anyone who has been gun/ammo/accessory shopping online in the past 5-7 years knows that PSA is one of the largest online firearms and accessories retailers on the internet. It would be a blessing to us as gun owners if a company like JJE would buy the Remington ammo business then push it into the stratosphere like they have PSA. It's a simple recipe that takes time and capital: increase production facilities, increase product output, increase workforce, lower prices; but clearly the business model would work in the firearms industry.

This could be interesting, although TTAG revised that article to say that JJE Capital Holdings LLC is one of the bidders, not the only bidder. Hopefully, the future owner won't be another "buy, squeeze, divide, sell" like the Freedom Group.
 

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How could an ammo manufacturer go broke right now? Do they have piss poor management, or am I missing something?
 

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How could an ammo manufacturer go broke right now? Do they have piss poor management, or am I missing something?
They were broke long before this crisis started.
 

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How could an ammo manufacturer go broke right now? Do they have piss poor management, or am I missing something?
Remington never fully recovered from the last bankruptcy, the brokered leverage agreement really hurt. The covid event has also made it hard to get parts from vendors and even raw materials. As for the JJE bid, it is a stalking horse setting a bare minimum bid for atleast a component of the company. The judge will ultimately decide if the company can be split and sold off or if it's in the best interest of everyone to keep it together. We should know more in the next week or two.
 

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They were broke long before this crisis started.
Well, yes and no. This is their 2nd bankruptcy, though from reports Remington came out of the first one quite well having shed $775 million in debt in 2018. Now, again, Remington is hundreds of millions in debt. I'll bet Freedom Group shifted debt from DPMS, Bushmaster, Storm Lake, and Tapco (all businesses under the Remington Outdoor Company umbrella) before they shut them down; all of which is/was owned and operated by the Freedom Group, which is itself owned by Cerberus Capital Management.

Since they're all privately held companies and the Freedom Group is a private holding company, the only peek at the books the public will ever see is what is made public as a result of the Bankruptcy.
 

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I wouldn't be surprised if as much debt as possible was dumped onto Remington and as much value as possible taken out before the bankruptcy...
 

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If anyone is interested in the legal aspects and up to date info check out the link below.
 

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Was this due to mismanagement or politics? Everyone knows the NY governor hates guns and has passed the most restrictive bans in the country. Business taxes (and taxes in general) here in NY are absurd. Was this a combination of strong arm politics by the anti gun NY govt or did Remington executives get greedy and run the company into the ground? The town of Ilion and the surrounding rural population have lived off the Remington plant for decades. Shutting this place down completely is going to be the last nail in the coffin for many poor or underemployed central New Yorker's.
 

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Was this due to mismanagement or politics? Everyone knows the NY governor hates guns and has passed the most restrictive bans in the country. Business taxes (and taxes in general) here in NY are absurd. Was this a combination of strong arm politics by the anti gun NY govt or did Remington executives get greedy and run the company into the ground? The town of Ilion and the surrounding rural population have lived off the Remington plant for decades. Shutting this place down completely is going to be the last nail in the coffin for many poor or underemployed central New Yorker's.
Don't forget Remington (ROC) is more than Ilion, you have Ammunition in Arkansas, Barnes in Utah, R&D and manufacturing in Huntsville Alabama where I am, and the custom shop in Montana. My opinion is that the last bankruptcy set them up for failure. From being saddled with debt from Freedom group to how the company had to borrow money with the new bankers, this felt unfortunately expected.
 

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Was this due to mismanagement or politics? Everyone knows the NY governor hates guns and has passed the most restrictive bans in the country. Business taxes (and taxes in general) here in NY are absurd. Was this a combination of strong arm politics by the anti gun NY govt or did Remington executives get greedy and run the company into the ground? The town of Ilion and the surrounding rural population have lived off the Remington plant for decades. Shutting this place down completely is going to be the last nail in the coffin for many poor or underemployed central New Yorker's.
i think it is likely more of what was listed above. their first bankruptcy had a bit to do with inability to shift focus early enough on customer changing interest and a terrible firearms market. The secondary is what happens when PE forms buy old brands. look at toys r us. same happened to them. tons of debt was shifted from their other holdings then bankrupted again after every last dollar was milked out.
 

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I wouldn't be surprised if as much debt as possible was dumped onto Remington and as much value as possible taken out before the bankruptcy...
I read an extensive article explaining what happened to drive "Freedom Group" into bankruptcy.
It is exactly what is posted (above)
These types of actions are not random!
It is a sad way to do business.

Richard
 

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I read an extensive article explaining what happened to drive "Freedom Group" into bankruptcy.
It is exactly what is posted (above)
These types of actions are not random!
It is a sad way to do business.

Richard
it is a terrible way to treat respected bits of industry. And more so, the communities that thrive off of the work. when given a series of choices and one clearly shows that it makes the largest profit, and is legal....


still sucks
 

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it is a terrible way to treat respected bits of industry. And more so, the communities that thrive off of the work. when given a series of choices and one clearly shows that it makes the largest profit, and is legal....


still sucks
I'll just be glad when this all is all over on the 29th, it's been a stressful 3 months. Hopefully no one loses their job but that's probably just wishful thinking on my part.
 

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I read an extensive article explaining what happened to drive "Freedom Group" into bankruptcy.
It is exactly what is posted (above)
These types of actions are not random!
It is a sad way to do business.

Richard
I would be interested in seeing the article. Often what is actually happening in these private equity deals is different than what is portrayed in the press. In any case, the bankruptcy auction will wipeout the equity holders who made these decisions, force a haircut on the debt holders and the operating businesses will continue with a new owner. Hard to find buyers for these kind of assets now. Being public is hard and nearly all the private bidders have been warned off the industry by their public pension fund limited partners. Interesting that the "stalking horse" bid is an Indian tribe which lives under a whole different legal and liability structure
 

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Just an update in case anyone was interested. Looks like we'll be bulkanized. Time to freshen up the resume.
100950
 
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