Remington files for Bankruptcy with possible buyout from the Navajo Nation
This week Remington Arms Co is preparing to file for Chapter 11 bankruptcy protection. According to the Wall Street Journal, The firearms company is in talks for a possible sale to the Navajo Nation.
Remington is one of America’s oldest gun makers but has been struggling to make a profit in recent quarters. This latest chapter 11 isn’t the first time the gunmaker had to file for bankruptcy. In March 2018, sales started to flatten, and the company had trouble meeting its financial obligations.
The Navajo Nation made a bid back in 2018 as well, but the deal fell through. They planned to use an investment trust fund to purchase Remington. They had plans to remodel the company by dropping the manufacturing of assault-style weapons and focusing instead on smart gun technology.
The Native American group consists of more than 350,000 members and landholdings of more than 27,000 square miles in Arizona, New Mexico, and Utah, making it one of the largest Native American reservation in the United States.
Filing for bankruptcy again could ensure that the deal with the Navajo Nation goes through, making the future uncertain for America’s oldest gun maker. If the Native American group can obtain the company, it’s entirely possible to see them take it toward “Smarter” guns and safety technology.
The company’s sale would occur through a court-supervised process and is subject to higher and better offers and approval from a judge. Remington and a representative of the Navajo Nation have yet to respond to requests for comments.