so whats going on with the whole winchester thing.
i have heard alot of conflicting info from no more winchester of anykind to, only the ammunition wing will be around to its just a realignment.

if anyone could just summerize for me what the heck is going on i would appreciate it.

The only thing I have heard was their New Haven CT plant shut down. HOWEVER, FN Herstal Group is selling it and has like 4 bids of serious companies to take it over, and perhaps start manufacturing the discontinued models again, who knows. The models the New Haven plant manufactured were the Model 70, Model 1300, and Model 94. All their ammo and other products are made elsewhere and were unaffected.

That is what I have heard, if there is new news going on I don't know about it

I believe that one of the prime movers in the effort to have winchester bought has regestered here at SF under the name of GunGopher. Some more info can be found here: http://www.shootersforum.com/showthread.htm?t=30097

The New Haven plant did not produce enough profit to keep stockholders happy. I heard that Beretta was making a move to buy. They already own Valmet, SAKO, and Tikka. So it goes.
TR

The New Haven plant did not produce enough profit to keep stockholders happy. I heard that Beretta was making a move to buy. They already own Valmet, SAKO, and Tikka. So it goes.
TR

If anyone was to buy it, I would like Beretta. I don't know much about Valmet, but Beretta, Benelli, SAKO, and Tikka etc. are all quality firearms so I think they know what they are doing ;). I just hope they bring back the old models, but I don't know the logistics and legalities.

The New Haven plant did not produce enough profit to keep stockholders happy. I heard that Beretta was making a move to buy. They already own Valmet, SAKO, and Tikka. So it goes.
TR

In essence, yeah. FN was wanting to move production of all of the models made in New Haven to some foreign country where they could easily pay people $2 a day to make rifles.

And, from what I'd heard of the situation, the "unprofitability" was arranged by FN. An example to give you an idea of how they faked "losses.": Winchester sells stuff to FN for $500,000. FN sells it back to Winchester for $5,000,000. "Winchester lost $4.5 million dollars this year!"

gotta love foney buisness

Doesn't berretta have some crazy dealer programs with bennelli, etc.

Here's an article from "The Shooting Wire" that was posted on another website. http://www.shootingwire.com/
Last Friday, June 23, was the deadline for qualified bidders to submit proposals for acquisition of the New Haven, Connecticut facilities of U-S Repeating Arms Company (USRAC), licensee of the Winchester firearms brand.

That facility was closed last March 29 after current owner, Belgium's Herstal Group, decided to stop their ongoing - and mounting - financial losses at the storied location. Since then, New Haven Mayor John DeStefano has waged a no-holds barred campaign to keep the facility - and its jobs - in New Haven.

That campaign has included bringing in outside assistance to help woo a new buyer for USRAC.

To that end, the city and USRAC hired outside consultant Kevin S. Tierney of Workout Solutions, Inc. a Guilford, Connecticut business consulting group, and Michael H. Blank of MHB Enterprises of St. Charles, Missouri.

Tierney's specialty is workouts and corporate restructuring. Blank's expertise includes stints in the financial industry, but might best be described as enthusiasm and a dedication to see Winchester stay in New Haven, Connecticut, ideally, but to remain an American-manufacturing company, minimally.

Last evening, I spoke with Blank about progress they've made in their drive to save Winchester.

"I think we're doing pretty good," says, Blank, "our original offering period was to be 90 days; it was cut to 75. The article that ran in the Wall Street Journal on the fifteenth was scheduled to run two weeks sooner but bumped for the killing of Moussawi, so we've actually lost about a month in the process, but we're pretty pleased."

So what' constitutes "pretty pleased"?

Qualified prospects, according to Blank.

Prospects he says includes one "full line American firearms manufacturer" and other companies and individuals who appear qualified to close the transaction.

"We're still answering questions for some groups, " he says, "and we've had a couple who came to the table who decided they'd be better suited as equity participants behind another company."

What, I asked, about the fact that a buyer would only be acquiring the assets of USRAC. After all, the Winchester brand is owned my Olin Corporation.

Wouldn't a USRACC buyer would have to deal with Olin for the license of the Winchester firearms name, especially since the USRAC/Herstal license expires at the end of 2006?

Yes, says Blank, but isn't necessarily the deal breaker it might seem.

"We have a gentleman's agreement with Olin," he says, "prior to the close of the transaction, the buyer will sit with Olin, share their vision for Winchester and Olin would decide if the license would go to the purchaser."

In other words, a potential purchaser would be assured of the ability to license the Winchester brand prior to closure.

So, I asked, what about keeping Winchester in New Haven, are all the potentials agreeing to keep the 140 year old location operating - even with its modernizations?

Short answer, no.

However, Blank explained, the city of New Haven and Connecticut have offered what he characterizes as "unique and imaginative" solutions to help lower the undisputedly high costs of doing business there.

Despite that, however, there's no certainty that USRAC/Winchester would remain in its longtime home.

"We've done all we can to advocate New Haven and Connecticut," Blank says, "but we're also representing USRAC. Some qualified bidders would like to stay in New Haven and others are not interested. We've done our advocacy work for the area, but we're also trying to keep the company in the United States."

Blank, an unabashed fan of Winchester, also admits that there are some fairly strong requirements a potential acquirer would have to fulfill, including a requirement to being a "full-line firearms manufacturer" producing, minimally, the Winchester Models 70 and 94 rifles and the Model 1300 shotgun.

Other requirement set forth in the licensing criteria call for the manufacture of 150,000 "consistently high-quality" firearms annually, and service for Winchester brand firearms manufactured prior to 1981.

In the event the ultimate acquirer were another manufacturer, the Winchester products would be kept "distinct from any other products" but the agreement would also permit the development and marketing of new models "subject to licensor (Olin) approval.

It is important to note that the qualifications listed in the buyer qualification package constitute the ideal arrangement the current parties would like to see.

As in any business transaction, the potential purchaser/licensee could counter offer on the requirements.

The next critical deadline is July 15.

On that date, bidders are to be notified if they and their offers will be moving to the next step of the process.

But it is a very short window.

Under the "standstill agreement" struck with Herstal, the transaction must take place no later than September 1.

So will there be a deal?

"We're not there yet, but I'm very optimistic," says Blank. "There have been some amazing things that have happened to get us this far."

"I went into a bookstore to get a coffee," he says,"and Wayne LaPierre of the NRA was there doing a book signing. We had a long chat, and he's certainly voicing his support. I was on NRA News last week, and it looks like we're going to get some more support."

"We have great plans and some unique ideas," he says, "and we're still talking to some equity players who want to get involved, so I'm optimistic."

We'll keep you posted.

--- Jim Shepherd

Well let's just hope all that equals a serious maker for the Model 70 Classic emerges. I have handled some nice Rugers, Savages, and Remingtons lately, but their actions are inferior to that perfect improved Mauser design. The Rugers would be close if they would get a decent trigger and free float the barrel.

http://www.golfbusinesswire.com/shooting_wire_release.html?releaseID=107231

June 30, 2006


Several Groups Express Interest in Winchester Site



New Haven, Connecticut ' Several groups have submitted proposals to acquire the assets of the Winchester Firearms operation and restart production of the famed rifles in the city.

Fifteen pre-qualified groups were permitted access to the facility and its financials before the June 23 deadline to submit proposals. Several of the groups met the deadline for proposals.

Mayor John DeStefano, Jr. said he remains optimistic about the process. The City of New Haven and U.S. Repeating Arms Co. agreed on a 'stand still' agreement, which allowed the City and a third party consultant a time frame during which to seek a new buyer for the plant. U.S. Repeating Arms also agreed to pay the City approximately $850,000 pursuant to a tax abatement recouping real estate and personal property taxes..

'We made the unusual decision to aggressively fight to keep jobs in the city,' the Mayor said. 'The process allowed us to market not only this historic site, but also the entire economy of New Haven. We can now only wait for the negotiations ' which will involve the interested investors; the Belgian based Herstal Group, which owns the property; Olin Corporation, city officials and state economic development specialists ' to run their course.'

'We are pleased that so many qualified investors demonstrated real enthusiasm for the continuation of the production of Winchester firearms,' said Kevin Tierney owner of Workout Solutions, Inc. of Guilford, the consultant hired to:

1. Maintain the production of Winchester firearms in New Haven which has continued since 1865

2. Facilitate negotiations with Olin Corporation in St. Louis, MO, the owners of the Winchester name for a new license

3. Satisfy the financial needs of Herstal Corporation regarding the purchase of the assets of US. Repeating Arms Company.

Tierney continued by saying, 'But the real challenge begins now, as we enter a particularly sensitive period in the above process. The smallest complications can threaten a sale within the above parameters, so we cannot provide details about the nature of the proposals and we will not speculate about the future of the property and the rescue of Winchester Firearms.'

In coming weeks, the consultants will work with the most promising groups to finalize financial terms and negotiate a new licensing agreement with Olin Corporation for continued use of the Winchester brand. An announcement on the results of these efforts is likely during the next six weeks.

For 140 years, the Winchester site has been a landmark of manufacturing innovation. The company was a leader in the manufacture of high-quality repeating rifles. Its first models, the 1866 and the 1873, were commonly referred to as the 'Gun that Won the West.'

The spirit of innovation has permeated New Haven's history. Eli Whitney, a Yale graduate, first developed the cotton gin to simplify the process for cleaning raw cotton. He went on to establish a musket factory that used interchangeable parts in the manufacture of firearms. The same spirit of innovation remains evident in New Haven today ' with the growth of life science companies and other businesses at the leading edge of science, technology and industry.