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Navajo Nation
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Navajo Nation Breaks Off Talks to Buy Remington Out of Bankruptcy


Remington Arms Co.'s discussions with the Navajo Nation over a potential bankruptcy sale of the firearms manufacturer have fallen through, leaving the company still searching for a buyer and struggling with debt, people familiar with the matter said.

The Navajo Nation, a territory with roughly 175,000 people across parts of the Southwest, had been in advanced talks regarding a deal in which it would acquire Remington following a near-term bankruptcy filing, before the nation's governing body decided not to move forward, one of the people said.

Remington and representatives of the Navajo Nation declined to comment Friday.

Ducera Partners LLC, Remington's investment banker, is looking to find another buyer. If a purchaser can't be found, Remington could end up filing for bankruptcy without one, the people familiar with the matter said.

Founded in 1816, Remington's namesake weapons are widely used among hunters, law enforcement and the military. However, the company's sales have softened following the election of President Trump, whose stance against gun control assuaged firearm enthusiasts' fears that they should stock up in advance of potential regulations.

Remington previously filed for bankruptcy in 2018, transferring ownership from Cerberus Capital Management LP to creditors including Franklin Resources Inc. and JPMorgan Chase & Co. Franklin remains the company's largest shareholder, people familiar with the matter said.

In addition to the challenge of subdued gun sales, the company has faced litigation surrounding the 2012 Sandy Hook Elementary School shooting in Connecticut in which the killer used the Bushmaster rifle manufactured by Remington.

Families of the victims filed wrongful-death claims against the company, accusing it of producing and selling a weapon unfit for civilian use.

The Connecticut Supreme Court last year said that while the families couldn't sue Remington for merely selling the rifle used in the shooting, they could proceed on allegations the company improperly marketed the military-style weapon to civilians. Remington appealed the ruling to the U.S. Supreme Court, which declined to hear the case. It is now scheduled to be heard in a Connecticut court in 2021.

Write to Alexander Gladstone at alexander.gladstone@wsj.com


 (END) Dow Jones Newswires
 07-24-201433ET
 Copyright (c) 2020 Dow Jones & Company, Inc.

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