4 ms·
It's a little strange that these big gun companies are not private, independent, and debt-free. They've been around for long enough -- why do they subject thems
by jeffdavis 9y ago
It's a little strange that these big gun companies are not private, independent, and debt-free. They've been around for long enough -- why do they subject themselves to the whims of investors? Why not just keep chugging along and protect their products?
I guess the obvious answer is "money". Seems sad that the spirit of independence is so shallow.
- Zak 9y agoA look through the relevant Wikipedia article shows Smith & Wesson having changed ownership 5 times since 1965 when the Wesson family sold its controlling interest, presumably to cash out. The last sale was in 2001, for a mere $15 million. The company's current market capitalization is over half a billion dollars.
- Spooky23 9y agoThey are mostly private companies where the families cash out and the fate of the company and brand depends on the buyer. It looks like Remington got picked up by an equity group that bought the firm, borrowed as much as possible, paid itself as much as possible and is now liquidating. It’s a common business model. See Toys R Us and even the KMart/Sears shitshow as recent variants on the theme. The movie Wall St described similar strategies from the 80s.