Remington, one of the best known makers of firearms in the United States, has reached a deal with its creditors to file for Chapter 11 bankruptcy.
The deal follows declining sales from the gunmaker - due in part to lessened fears that gun restrictions in the United States will get tighter at any point in the near future, the Daily Mail reports.
The Trump administration is a major supporter of the Second Amendment, and other gun companies such as American Outdoor Brands and Sturm Ruger have both reported having lost money since Trump's election.
Remington will get $145 million to keep the company running through the bankruptcy process.
AdvertisementAdvertise with NZME.
The bankruptcy filing is taking place in the state of Delaware, and Remington will seek to write off nearly $700 million in debt.
Cerberus Capital Management, the company that controls Remington, will lose control of the gunmaker in the deal.
Remington's creditors, which include companies like JP Morgan, will waive Cerberus' debt in exchange for equity in Remington.
'We have an outstanding collection of brands and products, the unqualified support of a vibrant community across the industry, and a deep and powerful culture. We will emerge from this process with a deleveraged balance sheet and ample liquidity, positioning Remington to compete more aggressively and to seize future growth opportunities,' Remington Chief Executive Officer Anthony Acitelli said in a statement.
Remington employees' wages and benefits won't be affected by the deal, according to the report by Reuters.
Following the Sandy Hook shooting that left 26 people dead in 2012, some investors left Remington due to the perpetrator's use of one of its rifles. The families of the victims of the shooting have a pending lawsuit against Remington.
In the last nine months of 2017, Remington reported a $28 million operating loss.