Remington might be in a tight spot financially, but that doesn’t mean it’s still not committed to the values that most American gun manufacturers hold dear. Thus, it turned down a purchase proposal from the Navajo Nation.
Remington Outdoor turned down the bid, estimated to have been around $500 million, according to PitchBook. The proposal was apparently made in May, when Remington was trying to emerge from Chapter 11 bankruptcy protection.
One suspected reason for Cerberus’ rejection is thought to be that the Navajo Nation planned to turn Remington into a gun maker with a “friendlier” image. That is, it was going to focus on procuring police and military contracts, rather than selling guns at gun shops. The Native American tribe also projected that it would stop selling modern sporting rifles—despite the fact that AR-15-platform rifles are among the most popular type of firearm in America—and it planned to earmark a portion of its profits for developing “smart gun” technology.
It was also suggested that the Navajo plan, which was to employ tribe members to the fullest extent possible, would have led to too great a shake-up internally at Remington.
The Navajo Nation saw the proposal as a way to invest in its members. The tribe has an unemployment rate hovering around 70 percent, according to attorney Drew Ryce, who wrote the proposal letter, a copy of which was obtained by The New York Times.
Of course, the Times expressed dismay that Remington rejected the bid. Staff writer Andrew Ross Sorkin had written an opinion piece in May that espoused his vision that a kindler, gentler company should buy Remington and transform it into something less than a real gun maker.
Remington issued a statement saying all offers were submitted to a review committee appointed by its board, which was selected by the stockholders. The bid was rejected about a week ago, about two months after it was received.
