The move comes amid declining sales linked, at least partly, to reduced fears among gun owners that the USA government will impose more regulations on buying firearms.
The opposite has occurred since the election of Trump as firearm background checks declined faster in 2017 than in any year since 1998, when the Federal Bureau of Investigation first began compiling the background check data.
The company also faced intense, unwanted attention in the aftermath of the 2012 massacre at Sandy Hook elementary school in Newtown, Conn. where 26 people, including children, were killed by a gunman armed with, among other weapons, a Remington Bushmaster assault rifle.
Remington's announcement might have painted a clearer picture nationally, but some leaders in Rockingham say they wonder what the future holds for an oft-quiet office space just outside the Mayodan town limits that employs about 150 local workers.
The deal calls for a pre-approved bankruptcy filing that would also pump $145 million of new capital into Remington's operating subsidiaries and provide $100 million in creditor-funded money as a debtor-in-possession term loan. The balance sheet restructuring will be effectuated through a pre-packaged joint plan of reorganization to be filed in the United States Bankruptcy Court for the District of DE in connection with the Company's filing of voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. That included the checks declining in 10 of 12 months, and by an 8.4 percent decline overall to 25.2 million. Revenues slumped 27.5 percent to $466.7 million.
Remington said in a statement that its operations "will not be disrupted by the restructuring process".
Executive Chairman of Remington, Jim Geisler, commented, "Since its founding over 200 years ago, Remington has been a uniquely American company and brand".
Over the ensuing decades, Remington hit the target with other successes.
Colt's Manufacturing Co LLC, a competitor of Remington, emerged from bankruptcy in 2016 following falling sales of its sports rifles and the loss of military contracts.
The families of the Sandy Hook victims sued Remington as well, with that case still ongoing.
One study, conducted by Harvard and Northeastern universities, reported that "about half the guns in America are owned by only 3 percent of the adult population, with an average of 17 firearms each". That rifle, however, was legally purchased and registered before being stolen and used by the attacker.
After Trump's victory in November, Remington's fortunes sagged.
Private equity giant Cerberus Capital Management acquired Remington in April 2007 for $370 million.
Huntsville-Madison County Chamber of Commerce CEO Chip Cherry also told that newspaper that new Remington CEO Anthony Acitelli is going to relocate to the Alabama facility. And so have gun sales. But in 2012, Remington took a hit on the news that Adam Lanza used one of the company's Bushmaster XM15-E2S in the CT massacre in which he killed his mother and 26 children and educators at Sandy Hook Elementary School.