Remington Outdoor, the second-largest U.S. gunmaker has suffered a “rapid” and “sharp” deterioration in sales and a similar drop in profits since January, and faces “continued softness in consumer demand for firearms,” credit analysts at Standard & Poor’s Global Ratings said in a report today.
S&P as a result has cut the company’s corporate credit rating — already at a junk-bond-level CCC+ — two full notches, to CCC-, a move likely to make the company’s high-yield debt less attractive to investors and lenders, and force Remington to pay more in interest. The company could face a change in control, bankruptcy, or default on its debt by next year.
A backlog of unsold, unwanted firearms will force Remington to operate at a loss and “pressure the company’s sales and profitability at least through early 2018, resulting in insufficient cash flow for debt service and fixed charges,” unless Remington gives up cash to pay for ongoing operations, S&P adds.
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8 comments:
They made a nice typewriter.
Hold on we will need you very soon. (map)
8:14pm What a jerk thing to say. They made great firearms for a long time. Some poor business decisions has ultimately doomed them.
I doubt that gun sales have gone down.
You just got off 8 years of record sales thanks to America's Best gun salesman, Barak Obama, and you saved NOTHING?
You deserve what you built, that's all I can say. Get a new CEO.
Lower the prices.
reduced purchases?! It wasn't that long ago that sales of firearms were up. Especially during the Obama years. Then there was a run on ammunition, especially .22 and 9mm calibers.
As Killary would say, "What happened"?
Yes - I agree gun sales are not down.
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