A suitor emerges for gun factory
Investment firm bids for Remington plant in bankruptcy auction
Seven companies have stepped forward to bid on parts of the bankrupt Remington Outdoor company, sparking hopes that their original gun factory here in Herkimer County will remain open.
In addition to the SturmRuger and Franklin Armory gun manufacturers, the Roundhill Group, which describes itself as a real estate investment firm, is among the bidders.
That company is the leading bidder for the Ilion factory and it has expressed an interest in keeping it operating, according to officials of the United Mine Workers, the union representing more than 700 plant workers.
A federal bankruptcy court in Huntsville, Alabama, where Remington’s other major factory is located, is reviewing the bids this week. The deadline for companies that want to buy pieces of a soon-to-be broken up Remington was extended from last week until Tuesday.
This marks the second Chapter 11 bankruptcy filing by Remington in two years. The company, which was started in Ilion in 1816, has been hobbled by lawsuits from families of those killed in the 2012 Sandy Hook elementary school shooting, in which the shooter used a Bushmaster assault-style weapon. That line of rifles is owned by Remington.
The company has also been burdened with heavy debt stemming from its sale to the Cerberus private equity firm more than a decade ago. Cerberus has since divested Remington but the gunmaker retained much of the debt due to the way the deal was structured.
The Bushmaster rifle is one of the guns that has been manufactured at the Ilion plant. Franklin Armory, a Nevada-based maker of military-style weapons, will be taking over that brand, according to news reports.
In addition to its major gun plants in Ilion and Huntsville, Remington will also be selling
off its ammunition plants to Vista Outdoor, which will buy the company ’s Lonoke ammunition line. Sierra Bullets Inc. will also purchase another ammo line.
Sturm Ruger is getting part of the gun company, including Remington’s Marlin brand, bidding $30 million.
Roundhill bid $13 million for its share of the business, according to news reports.
The Ilion plant is the mainstay of the Ilion community and a major employer in Herkimer County.
United Mine Workers President Cecil Roberts said he was encouraged so far by talks with the bidder looking to buy the Ilion plant (the Huntsville factory is non-union).
“Our goal throughout this process has always been to
keep that plant open and our members working. That appears to be on track, at least to this point. The UMWA has been in talks with that bidder about our collective bargaining agreement at the Ilion plant and we will be talking with them further in the coming days should their bid be accepted by the Court,” Roberts said in a prepared statement.
“We do not yet know what the final outcome of the Court proceedings will be, nor do we know what the final outcome of our talks with a successful bidder will be. But this is another step in the process, and I believe it to be a positive one for our members.”