Bronze Supporter
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Just look at what's happening to Colt! Even it' other massve holdings are at risk of failing! So sad to see legendary American gun makers falling and failing! And even Winchester is close with its business dealings with Browning and Fabrique National!!!
If the gun industry do not come up with something that is appealing to the next surge, more will fail.
The gun market is a mature market and the number of players, and the ones failing say it is a declining market. Any time you have the number of players in a market that there is in the "general " generic gun market, nobody is going to get sustainable market share. Something has to give at some point in time. Market share gets diluted with every new player in the pool. Especially when it is the price point market.
American manufacturers have historically been slow to react to market pressures and changes, and when the numbers of imports come in and start taking market share, they failed to adapt. The custom gun makers are enjoying the best market, and it is a growth market. The generic price point brands are going to struggle since all they have to compete on it price, and competing on price means you have to keep very tight cost containment, and tight cost containment often means compromises in manufacturing.
We had a container nursery business for a number of years, and could clearly see that the business was way over populated with nurseries and that a shakeout was inevitable. We kept a tight rein on that business, it was not our only business at the time, but one of 3 revenue streams we had. When the sales numbers got to a point that did not justify further production, we bailed on it and only lost about 25K in unsold inventory. Not the best situation, but not the worst either. Others waited too long and lost entire farms and homes.
Looking at how many brands are in various market segments in the gun market, it is a wonder more of them are not in Remington's situation. I am sure there are going to be more to follow.
Reading the article and analysts take, it is more likely they will do a Chapter 11 reorganization than a complete Chapter 13, unless the creditors convince the court that reorganization is not going to work and leave the with a sustainable model going forward. It is going to have to be pared down extremely , and see if they can compete, but unfortunately the economics of scale may prevail here.
I am not a Remington fan. There are so many rifles you can't get parts for repair from Remington they lost me as a customer. I wonder what will happen to thier cartridges?
Do you men believe I don't own a single Rem? [I have no love for push feed guns].
I shed all my tears when Winchester shut there doors in the good ol' USA.
I am not a Remington fan. There are so many rifles you can't get parts for repair from Remington they lost me as a customer. I wonder what will happen to thier cartridges?