Reuters reports that Remington Arms, one of the country’s largest gunmakers, has been seeking financing to allow it to file for bankruptcy. The company operates an ammunition plant in Lonoke County.

The gun business, which Arkansas has been ardently seeking to develop through efforts of the governor and its economic development agency, apparently holds some downsides. From Reuters:


Some potential financing sources, including credit funds and banks, have balked at coming to Remington’s aid because of the reputation risk associated with such a move, according to the sources.

Remington, which is controlled by buyout firm Cerberus Capital Management LP, was abandoned by some of Cerberus’ private equity fund investors after one of its Bushmaster rifles was used in the Sandy Hook elementary school shooting in Connecticut in 2012 that killed 20 children and six adults.

The sources asked not to be identified because the deliberations are confidential. Remington did not respond to several requests for comment. Cerberus declined to comment.

Credit rating agencies have warned that Remington’s capital structure is unsustainable given its weak operating performance and significant volatility in the demand for firearms and ammunition.

When Barack Obama was president, the theory (false) that he was intent on seizing weapons encouraged frequent gun-buying sprees.