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Remington Sold For the Price of a House.

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  • Remington Sold For the Price of a House.

    I like Remington 700s. I have a couple, they are dependable, well designed, and are pretty accurate. I guess I don't need to say here that Remington was the oldest, largest, US gun manufacturer still in business. This fall Remington was sold for $13 million, people pay that for fancy houses here.

    What I want you to do for just a second is to ponder how a company that makes many products that have a great reputation, can be sold for such a cheap price. Besides the 700, Remington also sold, well you all probably know a lot more about the shotguns, handguns and even an AR than I do. Most all of them good, they'd only tried to compete in the budget category towards the end.

    You can be excused for not recognising the new owners, Roundhill, doesn't sound like gun to me. You've probably not heard of Cerberus Capital Management ,who bought Remington back in 07, and who changed their name to the Freedom Group, and later still to Remington Outdoor Company. The problem is that Cerberus never was into guns, they are into money, and how they became Remington is the same way most old style respected American Brands came to be low paying often bankrupt makers of tools in China or Mexico.

    A company like Remington, even if it has had lackluster sales for years, still has lots of value. For one thing there is their good name, then there are the plants, and then there are the employees. There are companies (Cerberus for instance) who specialize in extracting that value for shareholders. The managers of those specialized companies make 2% commission from the total price of an acquisition.

    When Cerberus bought Remington some manager made four or five million. Beyond that he probably made 20% of the profit after he put them through bankruptcy, and with carried interest he might well of not paid too much tax on that 20%.

    You're probably thinking, "well if he turned a failing company around why shouldn't he get a big cut". The issue is how that profitability came about. What was the value still left in the company. People. First cut salaries way way back, then negotiate with the union. Upstate NY, union, I'll bet there was a pension in there too, pensions can be worth millions. As a matter of fact the bankruptcy judge forgave almost as much as the company was worth.

    Profits to shareholders are the goal, because the CEOs make salaries and stock options based on profitability. Sell manufacturing plants, sell peripheral businesses to large competitors for pennies on the dollar. Eventually they sold the whole thing to various purchasers via one more chapter 11 bankruptcy. And that's how some company named Roundhill now owns all the firearms side except Marlin.

    This type of capitalism is very popular here since WWII, it's called neoliberalism, the magic of the markets, profit is the only goal. Private industry is always better than anything public, and private industries only goal is profit.

    Don't like it? Too bad, your politicians also got sold. Corporations are legally people, and people here have the first amendment, Citizens United established the right of corporations to spend unlimited funds on campaigns.

    So our presidents, except Trump to some extent, can be bought. And most congressmen and senators, what about the courts? While the Heritage foundation has picked the four of the last 6 justices, and most people only worry about abortion or guns, the real scary part of the Supreme is $$$. Most every one of those 4 picks is very pro business, throw backs to the Powell Memo (google it). Where will corporate power stop? How do you like the corporate funded BLM?

  • #2
    Once Biden gets in the entire gun industry will disappear after slow Joe let's the gun companies get sued by individuals. Remington is the tip of the iceburg. All gun owners are targeted by the Democrats. Rioters are the new sacrosanct group. If they show up at my house they will be bleeding out. I'm too old to be letting some son of a bit#h smash me in the mouth. Bring it!

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    • #3
      If we think that things aren’t too far from “bring it”, we only need to confirm that through some of the recent actions and arrests of people defending their homes and themselves. Take a look at the truck driver on I-35 who drove onto the interstate from a ramp that was not blocked, or noted as closed. In so doing, he encountered a BLM protest, was stopped, drug from his vehicle, beaten. HE is now the one being charged with 3-4 violations, and none of the protestors who beat him have been charged at all. This entire black issue has been turned totally upside down. The dimwits speak of a racial division in this country as Trump’s fault when it is vastly on their own shoulders ! A racial population of 13% can not possibly take precedent over a entire country.........at least one would think !

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      • #4
        Originally posted by labrador12 View Post
        Once Biden gets in the entire gun industry will disappear after slow Joe let's the gun companies get sued by individuals. Remington is the tip of the iceburg. All gun owners are targeted by the Democrats. Rioters are the new sacrosanct group. If they show up at my house they will be bleeding out. I'm too old to be letting some son of a bit#h smash me in the mouth. Bring it!
        At my age, "life in prison" ain't much of a deterrent. 🤨!

        Comment

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