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Remington gun factory in Ilion to be sold as part of company’s breakup - syracuse.com

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Syracuse, N.Y. -- The Remington Arms factory in Ilion, which employs more than 700 people, will be sold to an investment company as part of a plan to break up the troubled gun maker and sell it off in pieces.

Roundhill Group LLC is identified in bankruptcy court filings as the successful bidder for the non-Marlin portion of Remington’s firearms business, which includes its gun factory in the Herkimer County village of Ilion and its handgun barrel factory in Lenoir City, Tennessee.

Roundhill has agreed to pay $13 million for the firearms business, according to documents filed Sunday in U.S. Bankruptcy Court in the Northern District of Alabama.

The pending sale has union leaders in Ilion optimistic that the gun factory will remain open.

“Publicly available documents filed over the weekend with the Bankruptcy Court indicate that there could be a successful bidder for certain assets of Remington that would include the Ilion, N.Y., plant, and that bidder would agree to keep the plant open,” Cecil E. Roberts, president of the United Mine Workers of America International, said in a statement Monday.

Roberts said the union has been in talks with Roundhill about the Ilion plant’s collective bargaining agreement and will be talking with Roundhill further if its bid is accepted by the court.

“Our goal throughout this process has always been to keep that plant open and our members working,” he said. “That appears to be on track, at least to this point.”

Citing slumping sales, Remington filed for protection from creditors under Chapter 11 of U.S. Bankruptcy Code on July 27, the second time in two years that it has done so.

The move created uncertainty about the future of the Ilion plant. The day after the bankruptcy filing, Remington warned in a notice filed under the state Worker Adjustment and Retraining Notification (WARN) Act that it may close the plant and lay off its 717 workers on Sept. 29 or within two weeks after that.

The company said it filed the notice because it could not predict the outcome of a potential sale of the company in a bankruptcy court proceeding.

Remington was founded in Ilion in 1816 by blacksmith Eliphalet Remington.

These are the other successful bidders for Remington’s various businesses:

  • Vista Outdoor Inc. was the successful bidder for the Lonoke ammunitions business.
  • Sierra Bullets LLC was the successful bidder for the Barnes ammunition business.
  • Sturm, Ruger & Co. was the successful bidder for the Marlin firearms business.
  • JJE Capital Holdings LLC was the successful bidder for the DPMS, H&R, Stormlake, AAC and Parker brands.
  • Franklin Armory Holdings Inc. was the successful bidder for the Bushmaster brand and certain related assets.
  • Sportsman’s Warehouse Inc. was the successful bidder for the Tapco brand.

The sales, which are subject to the court’s approval, would bring in $155 million to be applied to Remington’s debt.

Rick Moriarty covers business news and consumer issues. Got a tip, comment or story idea? Contact him anytime: Email | Twitter | Facebook | 315-470-3148

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Remington gun factory in Ilion to be sold as part of company’s breakup - syracuse.com
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