If I have read the right stuff, there’s a big difference between the situations surrounding Remington and Colt over the past 12 months.
When Remington went bankrupt in 2014 or whenever and sold to the PE group that just bankrupted them for the second go around, they were losing money on each round they made. Think about that. Crazy inefficiency.
In their latest bankruptcy, it is my understanding that the PE group essentially sucked all the cash out of the business and made enough money in that way to declare the bankruptcy and sell at a practical loss, and still come out financially ahead.
It is very possible that Colt has been operating under Remington’s original problematic circumstance. If you lose money on every item you sell, and the market picks up and you start selling a lot, it actually accelerates your loss in a market where you should be making a ton of money.
No idea if that is the case but it does bottle the mind a little bit to think that they went broke in this market.