Gunmaker Remington Arms, one of America's oldest gun makers, has filed for Chapter 11 bankruptcy protection for the second time since 2018.
The company filed for Chapter 11 in the U.S. Bankruptcy Court of the Northern District of Alabama saying that it has been a "struggle to pay legal fees and the high interest payments on its debt."
Remington had been owned by private equity firm Cerberus Capital Management since 2007, but Cerberus gave up its ownership when Remington first filed for bankruptcy. JPMorgan Chase and Franklin Advisors took ownership stakes in the company following its first bankruptcy, while Bank of America and six other banks extended $193 million in loans.
Remington is filing for bankruptcy again now despite a spike in gun sales in America due to social unrest across the country. The government ran 7.8 million background checks for firearm purchases between March and June, according to Axios.
Background checks for firearms purchases reached an all-time high in March and maintained record highs for April and May, according to the National Shooting Sports Foundation.
Last week, the company broke off bankruptcy sale talks with the Navajo Nation, leaving the 204-year old company without a buyer, according to the Wall Street Journal.
Remington has its corporate headquarters in North Carolina, though it recently built a new production facility in Huntsville, Alabama.
In 2019, Alabama cancelled a $3 million cash incentive payment to Remington as part of its prior bankruptcy filing. The company was obligated to hire almost 2,000 workers in Huntsville by 2023.
Remington was sued by the families of the victims of the 2012 Sandy Hook school shooting in 2015, and a Connecticut judge ruled late last year that suit will go to trial in September 2021. Remington made the Bushmaster AR-15-style rifle that was used to kill 20 first graders and six teachers.