U.S. firearm manufacturer, Remington Outdoor Company, said it will file for Chapter 11 bankruptcy protection, but stay in business throughout the process.

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"Difficult industry conditions make today's agreement prudent," said Jim Geisler, Remington's executive chairman, in a statement released by the company on Monday.

The company has been dogged by falling sales after one of its rifles was used in the Sandy Hook Elementary School massacre of 2012.

The restructuring will help the company to cut its debt by around $700 million and inject $145 million in new capital into its different units.

Remington said its business operations will not be affected by the restructuring.

Remington is owned by Cerberus Capital Management, but according to reports, once the restructuring process is over, the private equity firm will no longer own the company.

Remington could not immediately be reached to comment on its relationship with Cerebus in future.