(Reuters) — Cerberus Capital Management [CBS.UL] is letting its investors sell their stakes in Remington Outdoor and will take the gun maker out of its main private equity funds and put it into a separate financial entity, the New York Times reported.
The private equity firm had pledged to sell Remington Outdoor, formerly called the Freedom Group, after the deadly 2012 school shooting in Newtown, Connecticut in which a rifle made by the company was used by the gunman, the Times reported. It has not found a buyer.
“We are disappointed that we were unable to effect an outright sale of the company or other comparable transaction,” Cerberus wrote in a letter to investors on Friday, according to the Times.
The paper described the action as an attempt to mollify Cerberus’ public pension fund investors such as the California State Teachers’ Retirement System that have called for the sale of the gun maker.
In the letter, Cerberus said it would allow investors sell their individual stakes in the gun maker back to the company. Investors will get 30 days to decide whether to take up the offer.