Navajo Nation’s Cash Offer to Purchase Remington Outdoor is Rightly Rejected

Navajo Woman Learns to Shoot M16A4 (image from http://www.navajotimes.com/entertainment/people/2011/0511/051211marines.php)

According to the New York Times, the Navajo Nation has made an offer to purchase the Remington Outdoor Company, which recently emerged from bankruptcy. The offer was for approximately half a billion dollars in cash.

The offer was rejected by the owners of Remington, Franklin Templeton and JPMorgan Chase. We can’t be sure of the reasons for the rejection, but the Navajo nation’s plans for what they wanted to do with the company certainly couldn’t have helped.

In short, they sought a strategy that has already proven near-fatal to other firearms manufacturers.

According to Andrew Ross Sorkin, the NYT’s article author, the Navajo nation’s proven to fail plan:

It intended to shift the company away from its consumer business, including curtailing the sale of the AR-15-style weapons frequently used in mass shootings, to focus on police and defense contracts.

The tribe planned to use profits from those businesses to invest in research and development of advanced “smart guns” — those with fingerprint or other technology intended to prevent anyone but the gun’s owner from using the weapon.

The Navajo Nation had apparently read Sorkin’s own brilliant idea for turning Remington into “The Most Advanced And Responsible Gun Manufacturer in the Country.”

The only problem with that plan is that there would have been no profits to invest in “smart guns” or anything else. Shifting away from producing products aimed at the massive purchasing power of the American consumer and toward government contracts is a proven strategy for failure.

Don’t believe me? Ask Colt, which went bankrupt specifically because they shifted away from focusing on the American consumer to primarily military and police contracts. That recent failure highlights that a single, fickle, expensive customer is never the right answer. It’s too hard to get in the door, and way too easy for that door to slam shut.

Remington Versa Max and Remington 870 (image courtesy JWT for thetruthaboutguns.com)

It might have been a great investment for the Navajo Nation to purchase Remington if they wanted to generate profits with a a company that makes guns. But that’s not, apparently, what this offer was all about.

A plan like this, something designed to appeal to the woke crowd, and not intended to boost the bottom line, is destined to fail in short order. That kind of thinking would only leave the already struggling people of the Navajo Nation with nothing to show for their cash but a half a billion of their dollars thrown into the wind.

I’d like to see Remington out of the hands of the bankers as soon as possible. Hopefully someone will come through soon and make an offer that focuses on the product lines consumers want, and continue the company’s increased focus on quality control that consumers demand.

This offer clearly wasn’t that.

comments

  1. avatar Big Al says:

    An equity STATE??? Or maybe an equity STAKE?

    1. avatar Jon Wayne Taylor says:

      I removed the entire line.

    2. avatar MideastBeast says:

      I love this site, but they seriously need to invest in a proofreader.

      1. avatar El Duderino says:

        That has been rightly rejected.

    3. avatar santancowboy says:

      This is the same monopoly socialist nightmare cabal tribal council setup that suppresses free enterprise on any of the reservations. Think about that for a second. Can you imagine if your land wasn’t your land, that it was only assigned to you and the government can take it and anything you’ve built on it away any time for any reason? Collectivism.
      Go into business in competition with the tribal gov’t, even in an area that no one provides? Look out.

  2. avatar Bloving says:

    I don’t recall any time in Colt’s history when they paid a great deal of attention to the civilian side of the market – consistently banking on one government contract after another to stay in the black.
    One must wonder what variety of bigots currently call the shots of the Navajo Nation, clearly they have already forgotten the lessons of government “encouraged” disarmament.
    🤠

    1. avatar jwtaylor says:

      The irony was not lost on me. Short memories over there, I guess.

      1. avatar Bloving says:

        Follows link to New York Times… “comments section is closed”… and after only 13 or so – guess they weren’t getting the resounding approval of their bigotry they were hoping for.
        🤠

        1. avatar Nigel the expat says:

          Hah. Went to take a look and the hazing of the Times definitely has the most weight in those comments by far (with the exception of a few special snowflakes that are math challenged)

      2. avatar CZJay says:

        There is a lot of government friendlies put in positions to keep the people from thriving.

        High unemployment and drug use. Forgetting their culture exacerbates things. They’re lost and stuck in the desert. People move off the reservation and integrate into American society, which leads to their children not knowing their ancestors’ culture, clans and language. The younger generation may even become Californian SJWs types thinking that helps their people; similar to black people who call for gun bans.

        It’s very depressing. It makes people drink a lot and they can’t handle liquor. I didn’t want to turn out like some of my family members, so I never touched any drugs.

    2. avatar Mark says:

      I find it hilarious that a Native American tribe would sell the instruments of force ONLY to the entity that hunted them down until the few Navajo who remained agreed to live how that entity wanted them to. What next, IWI selling only to the Germans?

      1. avatar Calvin says:

        It’d be more like IWI only doing business with Hamas and Hezbollah. The current German state doesn’t have much in common with the Nazis.

        1. avatar Indiana Tom says:

          But does love Muslims.

      2. avatar Edward Maloney says:

        IWIs first big sale was to the German Army in the 50s and yes it was politically motivated and because the German government was feeling guilty.
        https://en.wikipedia.org/wiki/Uzi

        also, it is discussed in the book Uzi examined.

    3. avatar CZJay says:

      I am disappointed with the people running the reservation. Many other tribes are not happy with the people who control “their” so-called reservation. There is corruption and the controllers work against the people. Things are designed to keep the people down.

      Also, the people are not walking the correct path. I am somewhat guilty of that, but at least I don’t do drugs nor worship bad European ideas. I grew up off the reservation, I can’t really be blamed…

      1. avatar Old Fur Trapper says:

        I find their plans especially disturbing! I have repeatedly donated to many Native American charities from the Lakota to the Navajo. And always there is the continual requests for donations for clothes, water, school supplies, food and fuel. It never ends. The Navajo Nations have multiple casinos and outlets for selling their products across the South West as I have seen. The disturbing question is, What is really behind their offer to buy Remington. I DO NOT believe their statement. Indeed, as Sovereign Nations, they control who they sell to and do not sell to, including foreign markets. And if they have that kind of financial clout to spend, Why do their people continue to suffer on the reservations for lack of those things I mentioned? Where is their SELF
        DEVELOPMENT for the People FIRST? The Federal government should ensure that in this case, the Remington Company is not sold to them as the Sovereign Nations they proclaim to be. Let them instead hire companies to drill the water wells they need, install solar and wind for energy, feed and house their elders, rebuild and insulate homes, clothe and feed their children and fight the drug and alcohol abuse on their reservations.

    4. avatar Aleric says:

      The Navajos Councils are controlled by Socialist Leftist as are most of the Native American councils. They do the same as the Liberals do to inner city blacks, focus all their efforts into keeping people poor and dependent on the government. People that aren’t victims are no use to the Left.

  3. avatar Ralph says:

    It’s a big gamble for the Navajo Nation to roll the dice and double down with all their chips on Green. In fact, it’s very chancy. If I was a high roller from that tribe, I’d have serious reservations about taking a hit.

    1. avatar Bloving says:

      /facepalm
      I see what you did there.
      They’re Navajo, not Coushatta, do their tribe run casinos too? Seriously, I don’t know that.
      🤠

      1. avatar Art out West says:

        I assume the tribe has a casino. How else do folks come up with five hundred million in cash? Sadly, their plan seemed destined to run the company into the ground, and waste the tribe’s money. It is sadly ironic to see native Americans supporting gun control.

        Few people learn from history.

        1. avatar Mike says:

          Does the Navajo Nation still receive Government subsidies? After all they only have $500,000,000 in cash.

        2. avatar Marty says:

          Let’s see, JP Morgan Chase or the Navajos? JP Anti gun to the max. Although I’m a little surprised about the Navajos.

        3. avatar Ralph says:

          The Navajo Nation has four casinos, where they sell firewater to the white man and take his money in exchange for worthless round pieces of clay.

          http://www.discovernavajo.com/navajo-casinos.aspx

        4. avatar CTstooge says:

          I think the Navajo also own the largest coal-fired power plant in the US. Strangely Obama didn’t try to shut it down.

        5. avatar CZJay says:

          People who have control of the tribal money steal it and misuse it. It’s not different than American government. Bad people get into positions of power and they take advantage.

          I am not for “gun control.” Heck, I am way more “American” about the 2nd Amendment than most Americans and the NRA.

        6. avatar Big Bill says:

          Do the Navajo run casinos?
          I am truly saddened by people who will ask that question in a public forum, while sitting in front of a keyboard that will allow said people to access information on the internet.
          How lazy can you get?
          How willing to display your ignorance can you be?
          It makes you look like liberals.
          Edit: that last line will probably be edited out by TTAG as a flame.

    2. avatar Indiana Tom says:

      No pun intended, right?

  4. avatar Marcus says:

    Well maybe they should of just to prove a point ether fail or see the flaws of their intents and make a better business decision.

  5. avatar Shire-man says:

    They wanted to Colt Remington? If they want to burn through $500,000,000 just send me a check.

    1. avatar Jon in CO says:

      Can I get about $500k? That’ll get me a nice new house and 40 acres (or more), and some toys and a bunch of ammo to enjoy my land. And a new truck. Then I won’t have to work and I can go lobby gun rights for everyone, and push out NFA. That’s my ultimate life goal.

      Let me know!

  6. avatar Kevin says:

    “It intended to shift the company away from its consumer business, including curtailing the sale of the AR-15-style weapons INfrequently used in mass shootings, to focus on police and defense contracts.”

    Fact checked. Fixed it.

    🙂

  7. avatar Andrew Lias says:

    They have no handguns suitable for sale to M&P do they? They’d have a few shotguns sold, some “sniper rifles” and that’d be about it wouldn’t it? I mean the Civillian market is huge in comparison and the reason to court the M&P market is that you can use it to sell to people like Glock has.

    1. avatar El Duderino says:

      After the Colt 2000, I believe they (wisely) gave up. Chalk it up to the nature of business. Colt and Winchester might have Won the West but couldn’t keep it up.

  8. avatar FedUp says:

    Hey, do federal gun laws apply to Indian Reservations or can they make and sell anything there they want?

    If they want to make mostly M4s and M1921 Thompsons, maybe some Colt Monitors, I bet they could make a fortune.

    But that purchase proposal, jeez. I didn’t know any of the Nations had gone full progtard.

    1. avatar jwtaylor says:

      Yes, federal laws apply on reservation land.

      1. avatar Crazy but truthful says:

        Half the States in the Union have demonstrated that Federal law doesn’t apply when it comes to Pot. The Federal government has no Constitutional authority to regulate intrastate commerce. Maybe States and Tribes should nullify the NFA.😊

        1. avatar Rocketman says:

          It’s an interesting thought but until we get an honest to GOD libertarian government in place, I don’t see it happening.

      2. avatar Big Bill says:

        And even if they didn’t, there’s still the problem that Federal laws (at least for the most part) still apply OFF the reservations.

    2. avatar neiowa says:

      Anything gov’t applies only when suits their objectives of the moment.

      Build road to our casinos (no toll)
      Give us welfare, all sorts, not jobs.
      But let us vote.

      .

      1. avatar Calvin says:

        Sees what you did there, guvnuh

      2. avatar Mike says:

        “Objectives of the moment” usually means “makes them money” either Taxes, or the Politicians directly

    3. avatar CZJay says:

      Federal, state and tribal. In other words, super fucked.

  9. avatar Greg says:

    Let Remington pass into history. One less Fudd company to worry about. They should have ramped up ACR production focused on QC and moved out of NY.

    1. avatar FedUp says:

      The brand new Alabama factory might have been aimed at the eventual closing of the old Ilion plant, like they already closed the H&R plant in MA and the Para USA plant in NC.

      1. avatar Ed says:

        Include the Bushmaster plant in Windham, Maine among the list of closed facilities.

  10. avatar Ragnarredbeard says:

    Colt would have made bank if they had just sold good guns to the public. But no, they have to chase defense contracts and sell crap to us. Remington needs to use that lesson.

    1. avatar Ed Schrade says:

      Colt as well as Remington and others need to work on their pricing also.

    2. avatar DaveP. says:

      It wasn’t just that. Colt also went overboard to be a “good corporate citizen”. Remember the Colt Block? In order to make nice with the gun banners, Colt made their civilian AR15’s with a big block of metal inside the receiver so it “couldn’t be converted to full auto” (and had to use Colt replacement parts and ONLY Colt parts, just coincidentally). One of the reasons Bushmaster and DPMS took off was that AR buyers were sick of Colt’s BS.
      Honestly, if Colt had had the kind of police market share that Smith had, they would probably have signed on to the same consent decree Smith did. Maybe even sooner.

  11. avatar bobo says:

    after reading this post…all I can think of is

    I want to meet the ‘white man devil’ that sold them this blanket and ‘fire’ water!….lol

    because who ever did is a SALESMAN of the year…like selling ice to Eskimos!

  12. avatar DaveL says:

    I never knew the Navajo Nation had a cool half-billion available to blow on virtue-signalling.

    1. avatar Dan Zimmerman says:

      Read the NYT article. They have a $3.3 billion investment fund.

      1. avatar DaveL says:

        I’ve got money invested, too, but I can’t afford to blow any sizeable fraction of it on sure losers.

      2. avatar Mister Fleas says:

        If the Navajo tribe has that much money to waste on virtue signaling, then it sure as hell doesn’t need to leech off the taxpayer.😠

  13. avatar former water walker says:

    How the heck do these Indians have 500000000 bucks to blow on a SJW project? No offense ’cause I myself am 1/64th Indian(I think!?!). Mebbe more than Pocahontas😄😎😏Oh I see Dan…3 billion(!)

    1. avatar Geoff "Mess with the Bull, get the Horns" PR says:

      “How the heck do these Indians have 500000000 bucks to blow on a SJW project?”

      They probably own a casino…

      1. avatar Ralph says:

        Four casinos.

    2. avatar Trek says:

      They don not have to have most of it, they would be borrowing most (about 80%).

  14. avatar Jeh says:

    The navajo’s idea guys been hitting the firewater and peyote too much……

    1. avatar Brian says:

      I figure he works for Bloomberg too, and toke an extra comission to stear this investment advice toward them.

    2. avatar CZJay says:

      Alcohol be illegal.

  15. avatar Dyspeptic Gunsmith says:

    I honestly don’t see how this idea, had it gone through, would have been the best use of the Navajo Nation’s money. Let’s put aside the politics off the reservation for a moment.

    Most people here probably haven’t been on the Navajo reservation, nor seen the lack of power and transportation infrastructure there. Then there’s the water issue, which is a big conundrum in that area. There’s a little bit of surface water, but reliable water would have to be pumped from deep wells.

    Putting a large, modern manufacturing plant on the reservation would incur a huge sunk cost compared to putting it in a region where there’s better infrastructure to support manufacturing. I just can’t see this idea being the best possible investment for the Navajo people – politics completely aside from the issue.

    Now, when you add in the politics, technological challenges of any “smart gun” pipe dream, coupled with the fanciful daydreams of LEO’s actually signing on to a “smart gun” contract… now a company even ideally situated for infrastructure and transportation could go bankrupt quickly.

    1. avatar Indiana Tom says:

      Maybe they ought to drill some wells.

    2. avatar LarryinTX says:

      I didn’t see that they planned to move any manufacturing.

  16. avatar Fb says:

    Instead of spending all that money on worthless finger print technology, they should spend that money on providing better methods of educating the youth and adults proper fundamentals of gun safety and handling. In addition, provide a lower cost method to store firearms for lower income families.
    The technology ideas they are suggesting will drive Remington further into debt.

    1. avatar Mike says:

      Please stop giving sensible advise. Remember they still need Government assistance because the White Man stole our land and we live in Poverty,
      $3.3 Billion invest fund you say.

  17. avatar Klaus Von Schmitto says:

    I can’t believe those guys snuck up on me once.

  18. avatar Joe_thousandaire says:

    I would have loved to see this deal go through and have the “Navajo Nation’s” lose all their money. It would have been too rich to see history’s most hilariously failed culture do another face-plant.

    1. avatar LarryinTX says:

      While that IS a good point, the people leading them down that primrose path should go to prison. How about investing in my company, for a billion or two? They are thieves.

    2. avatar CZJay says:

      Huh?

      Are you one of those Alt-Right peeps?

  19. avatar B says:

    Recently visited the Navajo nation. I think they have more pressing needs for that $500M.

    1. avatar Hannibal says:

      “Like the country’s other reservations, the Navajo Nation is managed by a tribal government in cooperation with the federal Bureau of Indian Affairs. And like most other reservations, the Navajo Nation is plagued by, among other problems, crushing poverty, substance abuse, low education levels, low employment, inferior health care services, substandard housing and corruption in high places…”

      but apparently they have 500 million dollars to piss away on boondogles?

      1. avatar Brian says:

        Maybe they’re financial adviser also works for Bloomberg.

      2. avatar Jedi Wombat says:

        I was gonna say…if the tribal council there is anything like the tribal councils in WNY, 3.295B of the 3.3B is controlled by about 10 guys who live ridiculously well, the rest of the nation lives off the other .005B. Its horrible the conditions that those people let their “family” live in. They also were able to annex the land my Grandfather’s house was on. Didn’t have to pay him a dime, he owned the house still, just not the land it was on anymore. I guess he was lucky they didnt charge him rent…

      3. avatar CZJay says:

        The tribal, state and federal government makes sure the people as a whole don’t thrive. There’s sellouts who get rich off the people. I guess you could go as far as calling them traitors.

      4. avatar Big Bill says:

        “Like the country’s other reservations, the Navajo Nation is managed by a tribal government in cooperation with the federal Bureau of Indian Affairs. And like most other reservations, the Navajo Nation is plagued by, among other problems, crushing poverty, substance abuse, low education levels, low employment, inferior health care services, substandard housing and corruption in high places…”

        That seems to be the result in almost all groups the government “helps.”
        Like most other minorities int he US, government help to the Native Americans has resulted in far lower standards of living than the majority of the unhelped people enjoy.
        Not to say the councils aren’t corrupt, too. Free money has a habit of doing that to people.

  20. avatar doesky2 says:

    Shifting away from producing products aimed at the massive purchasing power of the American consumer and toward government contracts is a proven strategy for failure.

    Don’t believe me? Ask Colt

    But just think of all the Democrat legislators that would insist on shoveling gov contract money to them to show some kind of Lefty point. It might work with that gravy train.

  21. avatar GS650G says:

    They could use that cash to help poor Indians but they don’t seem to care about

  22. avatar ozzallos says:

    So tax payer money to support their nation, who builds casinos, whose profits go to buy remington, to retool it for law enforcement contracts and dead end gun tech nobody wants.

    Srsly convoluted.

    1. avatar CZJay says:

      Reservations are designed to fail. That’s the whole reason they were created, otherwise they would have just killed everyone. Hence the councils and Bureau of Indian Affairs.

  23. avatar Brian says:

    This smells of a fraud committed against the Navajo. Get them to foot your project and like a mass-casualty-victim’s family drop them like a hot potato with all the costs as soon as you’re done using them to grand-stand. Navajo’s bankrupted, white gentry librals ego-stroked; win-win like it was 1880 all over again!

  24. avatar G says:

    Remington doesnt really make anything cool or good anyway

  25. avatar Arc says:

    Rather than buying a gun manufacture… natives should build some roads and clean up the trash in their reservations.

  26. avatar Gun Owning American says:

    Time to cut off all federal funding.

  27. avatar sage419 says:

    2018… still keeping firearms out of the hands of Indians. If they want to compound the bankruptcy, let them. Other manufacturers will pick up the slack when the brand completely disappears.

  28. avatar Trek says:

    For smart gun adoption, laws mandating only smart guns be sold are required. Everyone in that area of research has said so.

  29. avatar MDH says:

    So…. Take the cash. Wait for the the Navajo Nation and Navajo tribal politics to run it into the ground like they do everything else, and then buy it back for a tiny fraction of the amount they paid for it.

  30. avatar John in TX (Was CT) says:

    Maybe it’s time to give up on the Remington name, if they can’t secure a meaningful market share of new purchases from their hunting rifles, shotguns, modern sporting rifles, or even their striker-fired pistols.

    Colt was a different story, people still want to buy quality 1911s and some of their modern sporting rifles have historically been very highly regarded. Not to mention the zillions of dollars they could make by rereleasing the Python (I don’t know what their sales are like on the new line of Series 70 1911s, but I suspect they’re pretty good).

    What role does Remington serve in today’s market?

  31. avatar Rosita Lugo says:

    Needs to take off her ear rings Doesn’t match the police uniform

  32. avatar Terclinger says:

    How stupid do Native Americans have to be to do ANYTHING that takes away individual gun rights and increases the firepower of the Federal govt.

    They learned nothing.

  33. avatar American Patriot says:

    It’s almost like the American gun mfr’s are all but dead. They have no ingenuity left & unions have killed them. That’s why the likes of Glock & Sig have taken over. They will cut their own throats to make a minor deal with the anti’s than wonder why the pro 2A crowd drops them & their sales are faltering, take dicks sporting goods for instance…..I hope those M/Fer’s go chapter 7.

  34. So let me get this straight. The Navajo are now wanting to purchase and run a firearm company with the sole purpose of ARMING the American government? I can’t tell if this is an Onion article or if this is real life. I mean, would you ever imagine that happening in a billion years? Do they teach history at all on the Reservations? Asking for a friend…

  35. avatar Keep It Here says:

    Thank GOD the offer got rejected! What about the THOUSAND employees working and living in the Mohawk Valley? This area would turn into a ghost town if the plan to shut Remington down went through. Over 1,000 jobs lost in an area built by and supported by Remington…… The financial loss of hundreds of families and businesses that depend on it. Good job turning that offer down, I LIKE my job!!

  36. Remington’s debt was reduced and they received investment, so no problems now.

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