A renowned firearm manufacturer based in North Carolina will file for Chapter 11 bankruptcy court protection.

Remington Outdoor Co. reached a restructuring agreement with creditors that will reduce the company’s outstanding debt by about $700 million while supplying the company with $145 million of “new capital.”

The announcement comes after the company consistently struggled with sales throughout 2017.

Madison, North Carolina-based Remington’s business operations will continue as normal, according to a release from the company.

“Importantly, the fundamentals of our core business remain strong,” Remington CEO Anthony Acitelli said. “We have an outstanding collection of brands and products, the unqualified support of a vibrant community across the industry, and a deep and powerful culture.”

Acitelli stressed the importance of the bankruptcy court reorganization filing.

“We will emerge from this process with a deleveraged balance sheet and ample liquidity, positioning Remington to compete more aggressively and to seize future growth opportunities,” he said. “We look forward to serving our customers, our partners throughout the industry, and our many fine employees, now and long into the future.”

Remington, founded in 1816, plans to provide a $45 million delayed draw first-out first lien term loan, which will transform into a debtor-in-possession term loan upon the actual bankruptcy filing.

Creditors will provide a $100 million debtor-in-possession term loan, which will turn into an exit term loan post-filing. In the reorganized Remington, term loan lenders will receive 82.5 percent of the equity of their claims in addition to their pro rata share of $2.67 million, according to the release.

Third lien noteholders will receive 17.5 percent of the equity and four-year warrants for 15 percent of the equity. The third lien noteholders will receive their pro rata share of the company’s remaining cash.

“Difficult industry conditions make today’s agreement prudent,” said Executive Chairman Jim Geisel. “I am confident this regrouping ensures that Remington will continue as both a strong company and an indelible part of our national heritage.”

Milbank, Tweed, Hadley & McCloy LLP will provide legal counsel to Remington. Lazard is the company’s investment banker while Alvarez & Marsae Capital Partners provide financial advising.

O’Melveny & Myers LLP will provide legal counsel to the term loan lenders, whose investment banker is Ducera Partners LLC.

Willkie Farr & Gallagher LLP will provide legal counsel to the third lien noteholders, whose investment banker is Perella Weinberg Partners L.P.