Remington in Money Trouble

Rocky Raab · #1 09-26-2005, 08:45 AM

I'll post this here since Remmy makes so much stuff.

STORY LINK

Bottom line: Remington company has a shortfall of assets in its pension fund. They're something like $29 million shy of their pension obligations. The amount is possibly more than they can make up through profits.

PJgunner · #2 09-26-2005, 02:50 PM

Rocky. There is a fairly long thread going on about this on accuratereloading .com. There is a whole bunch of arguing back and forth as to whether "Big green" is going to file for Chapter 11.
Paul B.

Skinny Shooter · #3 09-26-2005, 04:32 PM

They must be going in the hole after having to repair all those broken bolts that keep falling off.

Hawkeye6 · #4 09-26-2005, 06:06 PM

Most companies cannot afford defined benefit pension plans anymore. They were great twenty or thirty years ago, but they are expensive dinosaurs today. Workers and companies are better off witha defined contribution plan where the employees own their own accounts.

DB plans like the one described in the Remington artilce are jsut funny money until you retire and cash-out of the plan.

fabsroman · #5 09-26-2005, 11:01 PM

That would be correct Haweye. It is amazing to think that companies still use defined benefit plans because determining the actual liability many years down the road is rather tough.

While studying for the CPA exam, the only studying I did outside of the prep course was for 8 hours and that was on pensions. Defined benefit should definitely be extinct. I would think most companies would go with a 401(k) and then a definied contribution plan if they wanted to add a pension plan.

Hopefully, it will only be Chapter 11 for Remington and not Chapter 7. Can you imagine what life would be like with no Remington around? Skinny would be completely lost. I worry about the same thing happening with Ruger. One huge lawsuit could ruin these companies too.

BILLY D. · #6 09-26-2005, 11:25 PM

Quote:

Originally posted by fabsroman
That would be correct Haweye. It is amazing to think that companies still use defined benefit plans because determining the actual liability many years down the road is rather tough.

While studying for the CPA exam, the only studying I did outside of the prep course was for 8 hours and that was on pensions. Defined benefit should definitely be extinct. I would think most companies would go with a 401(k) and then a definied contribution plan if they wanted to add a pension plan.

Hopefully, it will only be Chapter 11 for Remington and not Chapter 7. Can you imagine what life would be like with no Remington around? Skinny would be completely lost. I worry about the same thing happening with Ruger. One huge lawsuit could ruin these companies too.

FABS

IF YOUR INTERESTED GO TO ACCURATE RELOADING. THEY HAVE REMINGTONS FINANCIAL SHEET THERE. GO TO THE GUNSMITHING FORUM. IT'S IN THERE. DON'T ASK ME WHY IT'S IN THE GUNSMITHING FORUM