Dick's being sued by ammo supplier

Discussion of Firearm Politics & Legislation. This forum is now strictly limited to discussions directly related to firearms.

Moderators: Chuck, Mustang380gal, Coordinators, Moderators

Post Reply
bignflnut
Volunteer
Volunteer
Posts: 8135
Joined: Mon Jun 30, 2008 12:14 pm
Location: Under Naybob Tinfoil Bridge
Contact:

Dick's being sued by ammo supplier

Post by bignflnut »

At the root of the filing is what BBM says was the failure by Dick’s to hold up their end of a contract for the ammo distributor to supply the retailer with Field & Stream-branded ammo for resale in their stores. The delay by the big box sporting goods outlet, argues the filing, resulted in BBM losing out on a multi-million dollar contract to supply helicopters to an overseas U.S. ally.

The 11-page lawsuit filed Tuesday in a Pennsylvania federal court details that the two companies entered into an agreement in January 2016 to supply ammo packaged with Dick’s trademarked Field & Stream packaging. Acting on the contract, BBM paid two ammo manufacturers — Bosnian-based Igman and Hungarian-based RUAG — a total of $4.5 million for the product and made the munitions available to Dick’s by November of the same year, a delivery timeline stipulated by the contract. However, BBM says Dick’s then left them holding the bag for almost a year, refusing to pay them or take delivery of the ammo.

The house-branded ammo, which could not be repacked and sold to another retailer due to the Field & Stream headstamp on the cartridges, was eventually accepted by Dick’s but the intervening storage, at BBM’s expense, cost the ammo distributor $200,000. Further, since BBM’s cash was tied up in the stalled deal, they could not fill a contract with Lebanon for a batch of Bell helicopters, losing out on an additional $5 million, which they are seeking to recoup from Dick’s.
I don't know what any of that means, but it sounds pretty bad.
“It’s not that we don’t have enough scoundrels to curse; it’s that we don’t have enough good men to curse them.”–G.K. Chesterton-Illustrated London News, 3-14-1908

Republicans.Hate.You. See2020.

"Avarice, ambition, revenge and licentiousness would break the strongest cords of our Constitution, as a whale goes through a net. Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other." John Adams to Mass Militia 10-11-1798
qmti
OFCC Member
OFCC Member
Posts: 664
Joined: Fri Dec 12, 2014 2:18 pm

Re: Dick's being sued by ammo supplier

Post by qmti »

Gee, that's too bad. I hope BBM wins the suit.
User avatar
catfish86
OFCC Patron Member
OFCC Patron Member
Posts: 2571
Joined: Sun Aug 14, 2011 12:44 pm

Re: Dick's being sued by ammo supplier

Post by catfish86 »

Don't be surprised if the SEC (Securities Exchange Commission) comes into it. The suit alleges that Dicks refused delivery so that it would have not have the ammo on its inventory, manipulating its books to appear more attractive to investors. Sitting on inventory looks bad to investors and is a fraud on investors.
God,
Grant me the serenity to accept the things I cannot change,
the courage to change the things I can
and the Wisdom to know the difference.

Carrying a gun is a right, not a crime.

Gun control is racist.
steves 50de
OFCC Coordinator
OFCC Coordinator
Posts: 3515
Joined: Sun Mar 13, 2011 5:26 pm
Location: n.e. ohio
Contact:

Re: Dick's being sued by ammo supplier

Post by steves 50de »

catfish86 wrote:Don't be surprised if the SEC (Securities Exchange Commission) comes into it. The suit alleges that Dicks refused delivery so that it would have not have the ammo on its inventory, manipulating its books to appear more attractive to investors. Sitting on inventory looks bad to investors and is a fraud on investors.
Not only that but avoiding inventory tax's on a order you should of received,...that could be illegal as well.
Black Rifles Matter
Post Reply