Well remington pulled it off-

[SPQR70AD]

I tell ya, the more I read on this thread the more I believe a great number of commenters here have the same level of business knowledge as Maxine Waters has about firearms!!

why dont you enlighten all of us with your expertise?

 

[JimT]

A lot of what people think they know about how business works they learned from watching movies from the 80’s

Or remembering Obama commercials run against Romney!

 

[JaoeyP]

Part of the struggle I see with the acquisitions in this industry is the acquired companies rarely perform to the level they did prior to acquisition. This is an industry of niche gizmos, gadgets, doo-dads, calibers, and what naughts. Often times they lose site of that niche or don't understand it. I also see issues where the larger a company is the harder the time they have innovating and reacting to market conditions- they are less agile.

 

[JimT]

why dont you enlighten all of us with your expertise?

You couldn’t afford my hourly rate.

 

[Ccrider]

A lot of what people think they know about how business works they learned from watching movies from the 80’s

Yep, and then they attempt to hide their lack of knowledge by making ad hominem attacks.

 

[CharlieNC]

When it's all over, we will see the CEO and the Board of Directors will have walked away with Millions.

Fortunately my experience was limited working for companies which encountered financial hardships, and I knew others who did the same with different companies. Invariably the problems resulted from terrible investment decisions by the CEOs who knew little about the business and market, and boards who knew even less and unable to question the proposals. All the accounts knew was to push to cut costs by pennies, when the loses were dollars per item. Instead of a golden parachute they should be forced to leave in shame. About 30 years ago I read 3M and others did not give stock options to executives, but required them to spend 20% of their salary to purchase company stock every year; that's a bit more skin in the game.

 

[kvd]

Add 7mm Short Action Ultra Mag to the list of good cartridges Remington brought out and then abandoned.

Sad to see an American company that recently celebrated its 200th year in business go under. Not many companies in the US can make that claim. Maybe some how the name will live on in a better company structure after the dust settles. After all, Indian motorcycles are available again.

 

[antelopedundee]

Cerberus dont lose any of their money they lose other peoples money

Just like the guy sitting in the WH and I understand he got the tax writeoff bennies as well.

 

[antelopedundee]

Na!...we'll get a forgivable Covid loan to cover the liabilities. Everyone is doing it, so why not? One guy took millions and bought a Ferrari, or was it a Lambro?

Are all of the Covid-19 spawned loans like the PPP able to be forgiven?

 

[antelopedundee]

Add 7mm Short Action Ultra Mag to the list of good cartridges Remington brought out and then abandoned.

Sad to see an American company that recently celebrated its 200th year in business go under. Not many companies in the US can make that claim. Maybe some how the name will live on in a better company structure after the dust settles. After all, Indian motorcycles are available again.

How did Colt manage to recover?

 

[riflewoman]

I was in Engineering not finance, but I’ve worked for companies big and small, both well run and struggling. In my experience, the executives bring a lot of baggage in their personalities and experiences and these direct their focus in their role. Many times this focus is either inappropriate for the industry or wrong for the best interests of the organization. I can’t tell you how many times I’ve seen executives fail, often bringing ruin to their whole organization.

I remember a film with Peter Drucker where he was examining the inner workings of a struggling company. He interviewed the key players including the chief accountant who was under consideration for the CFO position. At the conclusion Drucker told the CEO that the accountant “knew where the pencils are, but not where the costs are” and that the accountant should not become CFO. That expression has stuck with me ever since. There are way too many executives mired in minutia.

 

[Ccrider]

This is not the first time Remington has filed for bankruptcy. This quote from The NY Times sums it up pretty well:
“Remington’s bankruptcy filing in 2018 allowed it to shed more than $775 million of its $950 million in debt. Ownership of Remington transferred when it exited bankruptcy to some of its former creditors, including Franklin Templeton Investments and JPMorgan Asset Management. The firearms manufacturer continued to struggle to pay legal fees and the high interest payments on its debt, leading the company to a second filing on Monday.”

Remington will come out of bankruptcy less debt ridden and keep on going.

The lawsuits against them seem frivolous. Nonetheless, they are very expensive to defend. Millions of dollars.

The article is concise and well written. Here is the link: https://www.google.com/amp/s/www.nytimes.com/2020/07/28/business/remington-bankruptcy-guns.amp.html

 

[antelopedundee]

I was in Engineering not finance, but I’ve worked for companies big and small, both well run and struggling. In my experience, the executives bring a lot of baggage in their personalities and experiences and these direct their focus in their role. Many times this focus is either inappropriate for the industry or wrong for the best interests of the organization. I can’t tell you how many times I’ve seen executives fail, often bringing ruin to their whole organization.

I remember a film with Peter Drucker where he was examining the inner workings of a struggling company. He interviewed the key players including the chief accountant who was under consideration for the CFO position. At the conclusion Drucker told the CEO that the accountant “knew where the pencils are, but not where the costs are” and that the accountant should not become CFO. That expression has stuck with me ever since. There are way too many executives mired in minutia.

I used to work for a Danaher owned company. When we got taken over they implemented the Danaher Business System aka DBS. Someone rightly pointed out that DBS is 2/3 BS. The “knew where the pencils are, but not where the costs are” is particularly apropos IMO.

 

[rockhound78]

If I had the money to buy the Ammo operations in Lonoke, I think the best thing to do would fire management and hire people from here to run it, making good ammo. Especially in these times.

Good .22 lr ammo from Remington!!!!

I can dream, can't I

 

[SPQR70AD]

You couldn’t afford my hourly rate.

will you admit Remington hired you?

 

[mensajd]

If any of you are really interested in corporate finance and related M&A matters, read “Principles of Corporate Finance” by Brealey and Myers. All this stuff about strip mining firms and banks is pretty hard to do. Don’t ascribe to malice what can be explained by incompetence. BTW, senior management hired to do turnaround plays usually demand parachutes because the ship was already taking on water.

 

[mensajd]

Cerberus dont lose any of their money they lose other peoples money

PE firms typically get paid in management fees and carried interest, the latter of which depends on investment gains. Of course PEs want portfolio companies to succeed! Carried interest still enjoys favorable tax treatment so that is likely the preferred mode of PE income. Plus the upside potential is obviously way greater.

 

[tommeboy]

Now you know why they were buying up all the other companies and shutting them dow. This was planned a long time ago

 

[mensajd]

Now you know why they were buying up all the other companies and shutting them dow. This was planned a long time ago

Could you please explain how this strategy makes money for the acquiring entity? They overpay for the target companies. Then they shut them down (according to you). Do they make up losses by volume?

 

[Rsadams]

+1 Agree, and when they did not and would not offer a 6br (or something similar) to compete with the Savage M12 in 6br they might as well have turned out the lights then. JMHO. WD

Plus when they couldn't fix the 870s or wouldn't , that was the end for me.... There was horror stories with SHOTGUNS not getting fixed after 3-4 times being sent back... It's a shotgun...I bought my first Savage because of it and have liked it so far...