Remington Arms Co. is preparing to file for Chapter 11 bankruptcy protection and is simultaneously weighing a possible sale of the company to the Navajo Nation.
The Wall Street Journal reports Remington is “[making] preparations for the Navajo Nation to serve as the lead bidder to purchase Remington’s assets out of Chapter 11.”
Reuters reports that this is the second time Remington has looked to bankruptcy protection. The first time was March 2018, with the company emerging from bankruptcy that same year.
Remington is currently in an expensive litigious battle with Sandy Hook families who filed suit after a Bushmaster AR-15 was stolen and used in the December 14, 2012, attack on Sandy Hook Elementary. Remington is the parent company of Bushmaster.
The opportunity to buy the company via a bankruptcy sale gives “a potential buyer the chance to purchase Remington free from legal liabilities.”
Navajo Nation “is planning to vote to approve the deal…soon,” and if the deal is secured some think that civilian sales of Remington AR-15s will be ended. The talk of end to AR-15 sales is based on a New York Times report on the Navajo Nation’s 2018 bid to buy Remington. At that time the Navajo Nation “intended to shift the company away from its consumer business, including curtailing the sale of the AR-15-style weapons frequently used in mass shootings, to focus on police and defense contracts.”