The parent company for Palmetto State Armory, JJE Capital Holdings, has placed a bid to buy Remington's Ammunition line. The bid, if finalized, will cost the South Carolina Company 65 million dollars plus any liabilities.
This bid comes during one of the biggest ammunition shortages the gun industry has experienced in recent times, and is quickly on the heels of Remington's latest bankruptcy filing on July 27th.
After filing chapter 11, Remington began marketing the sale of their different product lines to potential buyers, with a failed attempt to sell to the Navajo Nation.
This bid includes the assumption of Remington's liabilities and will be open to “better offers” and is setting the stage for the bankruptcy auction to take place on September 17.
The proposal is said to cover both the design and manufacturing of all ammunition sold under the Remington and Barnes Bullet brand names and is set to include the manufacturing plants in Arkansas and Utah.
While Remington has reportedly agreed to sell to PSA's parents, there are some opposed to this sale. Immediately coming to mind are the Sandy Hook families who are suing the gun manufacturer.
Another opposed group are reportedly the United Mine Workers, saying that the proposed sale is “a bad faith attempt to decimate the union's collective bargaining agreement and retiree benefits plan without the negotiations required under the bankruptcy code.”
The judge rejected all objections and approved Remington's proposed bidding procedures on August 20th, and will consider approving the sale to the winning bidder at a hearing on Sep 23.
Stay tuned for more as it unfolds.
That's the news, now if you care, here's my opinion —
This is great news. We are currently in the midst of one of the biggest buying cycles for guns and ammunition that we've ever seen. And for Remington to be losing right now just tells me that they need to pass their torch on to someone who can handle going into the future.
Don't get me wrong, I hate to see anyone go into bankruptcy or lose their business. But if they can't handle it they should pass it on to someone who can.
I've personally toured JJE and PSA's facilities and can say that they've got their stuff together. To me, there is nobody better than these people to flood the market with much needed ammunition.
How do I know? If you were in the market for an AR-15 and tried to buy one from one of the other manufacturers, they'd be largely out of stock unless you were buying a top tier rifle that most people cannot afford.
But if you go to PSA's website, they've always got stuff in stock. Why? Because they've mastered the art of cranking out as much as they safely can as quickly as they can.
While we expect quality to go down, I haven't found that to be true. I've purchased parts, guns, and ammo from them and have been mostly pleased.
I've heard mixed reviews of their customer service but I have not had to deal with that firsthand and cannot comment about it.
I have received multiple things from them that were great, and one time I received something that had a blemish on it that wasn't supposed to. Since I know people over there I went around customer service.
This isn't a commercial for PSA, just that I think they'd be great to take over Remington's ammo line to start pumping much needed munitions back into the market.
Of course, this isn't an overnight thing, it will take time. But I don't see this ammo shortage going anywhere anytime soon.
What are your thoughts on this? Let us know in the comments below.