Remington Faces Default
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Delford
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“I look forward to the challenges ahead, while forging a course for the future with innovation and vision,” Acitelli said in the company’s statement. “We owe it to those that came before us and to those that will follow.”
This from the newly appointed CEO. I expect the recent rebates program was an attempt to sell a lot of excess product and get a cash infusion. The problem with that is that the products had better be of sufficient quality to satisfy those buyers. A lot of people stood in line at my Bass Pro for 8 hours to get a good price. If the R51 the guy behind me bought has magazine spring problems he'll blame the gun, not the mags.
This from the newly appointed CEO. I expect the recent rebates program was an attempt to sell a lot of excess product and get a cash infusion. The problem with that is that the products had better be of sufficient quality to satisfy those buyers. A lot of people stood in line at my Bass Pro for 8 hours to get a good price. If the R51 the guy behind me bought has magazine spring problems he'll blame the gun, not the mags.
I,m thinking that a company that manufactures durable good that lasts decades and maybe even a hundred years or more needs to be managed different than a company that makes furniture , household appliances or even cars and trucks.
Also with all of the sub $500 and $400 dollar rifles I`m thinking that the gun manufactures want to get prices down to the point that it could be an impulse buy for a lot of us.
Also with all of the sub $500 and $400 dollar rifles I`m thinking that the gun manufactures want to get prices down to the point that it could be an impulse buy for a lot of us.
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1stmarine
Member
It will be a sad day if they have to close shop.
IMO a manufacturing company needs to make sure they make products people actually want to buy. That is the key.
They do not innovate much and when they do they release a pistol that doesn't work. Not a good thing.
Also firearms that otherwise have been the bread and butter for decades now seem to show mistakes and that QC is not what it used to be.
Look at the Bergara rifles, they took a 700 that is an amazing action and put all the things that IMO are long overdue in factory R700.
Why Remington doesn't lead on this type of things, I cannot understand. ??
Also the fact that they are originally from NY State has been a problem given the socialist political model. Governor Cuomo wants to disarm NY and then the US.
IMO a manufacturing company needs to make sure they make products people actually want to buy. That is the key.
They do not innovate much and when they do they release a pistol that doesn't work. Not a good thing.
Also firearms that otherwise have been the bread and butter for decades now seem to show mistakes and that QC is not what it used to be.
Look at the Bergara rifles, they took a 700 that is an amazing action and put all the things that IMO are long overdue in factory R700.
Why Remington doesn't lead on this type of things, I cannot understand. ??
Also the fact that they are originally from NY State has been a problem given the socialist political model. Governor Cuomo wants to disarm NY and then the US.
Remington's wheelhouse has always been hunting rifles and shotguns. The strong hunting tradition is slowly fading away. The hot markets now are tactical anything and pistols. Remington has tried to enter these markets, but has only infiltrated in a small way. There are many examples in the past where their marketing strategies have been very feeble, and led to the demise of some good ideas.
They have seemed to try and be profitable by cutting corners on product quality. Gun buyers are discriminating people who quickly become disenchanted with anything that is not up to industry standards.
Legionnaire
Contributing Member
Remember IBM's ill-fated PC Jr? That's what I thought of the first time I handled a 710.
Interesting that people still buy Remington actions for custom builds. First thing they do is have them trued ...
Interesting that people still buy Remington actions for custom builds. First thing they do is have them trued ...
1stmarine
Member
Interesting in deed. And at the same time might have the bolt timed and a few other upgrades like a decent extractor.
IMO it doesn't make sense anymore. You have a R700 action like the Bergara B14 that comes with everything one could possibly wish so
just buy the bergara and go shooting and be done. by the time one is done blueprinting the Remington, putting a decent extractor, barrel, etc... one might
be well over $1K and still need a stock and glass.
This is what Remington should do, make the R700 the best action on the market in terms of features and ready to go out of the box.
It is a very strong action and it doesn't have to be the cheapest but it should be the RTG for any sort of duty.
While they are at it maybe release a bolt with a floating bolt head pinned and polished so it is smoother and more versatile.
We know this formula works great and it has the potential to reduce manufacturing costs on that part as they can segregate
and consolidate.
I know quite a few people that would be all over this and several other innovation products, like a modular system the working man can afford should be a Remington product and not a high end ridiculously expensive solution nobody can buy.
...just saying..
alsaqr
Member
Remington Outdoor is not in charge of its own destiny: The company belongs to Cerebus Capital Management. Cerebus unsuccessfully attempted to divest itself of Remington after the Sandy Hook massacre. Unable to sell the company, Cerebus bought back Remington stock from those desiring to sell.
https://www.nytimes.com/2015/05/16/...-will-buy-back-its-shares-from-investors.html
Remington Outdoor:
https://www.remingtonoutdoorcompany.com/
https://www.nytimes.com/2015/05/16/...-will-buy-back-its-shares-from-investors.html
Remington Outdoor:
https://www.remingtonoutdoorcompany.com/
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We have seen this story and it has happened before--to Winchester firearms for example--which is only a brand name for FN/Browning production, to S&W after the Bangor Punta era where it has recovered its mojo and destiny, and possibly to other companies absorbed into some large conglomerate. Hedge funds and conglomerates exist for one thing which is maximizing profit for their holders whether partners/investors or stockholders. Leaders of those companies often face choices on where and when to invest to get the biggest bang per buck. Those choices may include milking and starving lesser performing divisions/companies in order invest in the highest profit potential of other divisions/companies.
Notice that Ruger does not have that option--if Ruger doesn't invest and concentrate on manufacturing in new handguns/rifles/accessories, then ultimately the company would be doomed. That tends to concentrate the mind of its executives to focus on being a profitable and successful firearms company which requires attention to those things that make it so.
A conglomerate or hedge fund like Cerberus just cares about making money regardless of what companies do or don't do. A milked or underperforming company can ultimately be sold or spun off to invest in more profitable areas. Often these will buy distressed properties, try to build them up, and then sell them. Buy low and sell high is a time honored procedure for making money. But, sometimes they fail. The slow moving decades long disintegration of Sears is case in point.
Notice that Ruger does not have that option--if Ruger doesn't invest and concentrate on manufacturing in new handguns/rifles/accessories, then ultimately the company would be doomed. That tends to concentrate the mind of its executives to focus on being a profitable and successful firearms company which requires attention to those things that make it so.
A conglomerate or hedge fund like Cerberus just cares about making money regardless of what companies do or don't do. A milked or underperforming company can ultimately be sold or spun off to invest in more profitable areas. Often these will buy distressed properties, try to build them up, and then sell them. Buy low and sell high is a time honored procedure for making money. But, sometimes they fail. The slow moving decades long disintegration of Sears is case in point.
I only have 2 Remington guns. The first I bought was a 1911 that had a tool mark that should have been polished out. The second was an 1100 my coworker said was junk that would never cycle and he had to sell his.
Both go bang everytime.
I bought them because they were made in the USA and fairly cheap compared to other USA manufactured competitors. I wasn't really concerned with the finish.
I'd like to get an 870 for home defense and another 1100 in a different caliber, but I'm running out of storage space. The storage space is filled with random rifles and Mossberg shotguns.
The over saturation of guns with the small portion of guns owners might be their real problem.
Cerberus is the Greek word for the three headed dog that keep people in Hades.
https://en.wikipedia.org/wiki/Cerberus
And Remington will survive.
https://en.wikipedia.org/wiki/Cerberus
And Remington will survive.
Tommygunn
Member
Thats funny !So, you're saying Remington's "going to the dogs"
Three headed dogs.
Master Blaster
Member
Ho could they go broke so fast? well it's real simple.
The corporate tax rate, the financial structure, and the stock market in the USA does not allow you to retain earnings in a Piggy bank from one year to the next unless you want to pay 70% of your earnings to uncle sam. So they have to pay dividends reinvest by buying their own stock back or seek acquisitions. Then there is overhead that does not diminish when sales decline.
Then there is the fact that they are making crap and most firearm sales are repeat customers so their reputation precedes them. The last new remington I bought was a 547 custom shop .22lr rifle about 6 years ago, and it will not shoot worth a darn.
The corporate tax rate, the financial structure, and the stock market in the USA does not allow you to retain earnings in a Piggy bank from one year to the next unless you want to pay 70% of your earnings to uncle sam. So they have to pay dividends reinvest by buying their own stock back or seek acquisitions. Then there is overhead that does not diminish when sales decline.
Then there is the fact that they are making crap and most firearm sales are repeat customers so their reputation precedes them. The last new remington I bought was a 547 custom shop .22lr rifle about 6 years ago, and it will not shoot worth a darn.
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There are no doubt multiple reasons for Remington's problems. It is rare that a company gets in this much trouble for a single reason. It is usually a combination of a bunch of things that happen simultaneously and overwhelm the company's ability to recover.
I think Colt is in the same quagmire.
Both are living off former glories and not much more.
The market wants black rifles and polymer framed, striker fired pistols. If you don't have a decent product the market wants, you are SOL. It does not matter if you are selling guns, cars, or potatoes. The buyers (or in this case non-buyers) are who counts.
I think Colt is in the same quagmire.
Both are living off former glories and not much more.
The market wants black rifles and polymer framed, striker fired pistols. If you don't have a decent product the market wants, you are SOL. It does not matter if you are selling guns, cars, or potatoes. The buyers (or in this case non-buyers) are who counts.
Mark 40
Member
I work for a company that Cerberus bought out. The day they took ownership they said "We won't own you forever. We buy distressed properties, build them up, and then sell them". And they are doing it. Kept the valued employees, gave them raises and they keep investing/improving the product.
Now Remington's situation is totally different, and things didn't go as planned so far as many have noted in this thread. But Cerberus is not a tear down and bleed it dry outfit. They don't succeed every time, but as a corporation have had way more successes than failures. Hope they can pull them out or sell to someone who can turn it around, especially with the positive heritage Remington has (or had).
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