President perceived as friend to the gun industry, which doesn’t do it any favors at the cash register…
(Joshua Paladino, Liberty Headlines) America’s oldest gun manufacturer, Remington Outdoor Co., announced Chapter 11 bankruptcy yesterday, which will allow the company to stay in business while it works to increase sales and pay $1 billion in debt, Bloomberg reported.
An agreement will reduce the company’s debt by $700 million and add $145 million in new capital in hopes to boost profits.
Some say the election of President Donald Trump is to blame for Remington’s woes.
He was the first president to speak to the National Rifle Association in 30 years.
He reassured gun owners of his commitment to protecting the Second Amendment, telling the NRA, “You have a true friend and champion in the White House,” the Associated Press reported.
Cerberus Capital Management, owned by major Trump supporter Stephen Feinberg, owns Remington.
Feinberg bought Remington in 2007, before the election of President Barack Obama, when gun sales boomed due to fears of an impending crackdown on firearms ownership.
From 2007 to 2017, background checks — an indicator of gun sales — increased dramatically.
With the seemingly inevitable election of another anti-gun Democrat in Hillary Clinton, people continued to buy firearms.
But that all changed with Trump’s election.
Background checks fell more quickly in 2017 than any year since 1998, according to the FBI.
Remington also struggled against lawsuits and poor public perception after the crazed shooter at Sandy Hook Elementary in Connecticut used one of its AR-15 Bushmaster rifles.
While the company was cleared of all wrongdoing, some Cerberus investors fled nonetheless.