The U.S. firearms industry has faced some financial distress in 2025 as gun manufacturers and ammo producers filed for bankruptcy protection.
Some gun makers have also shut down operations for economic issues without filing for bankruptcy.
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Fledgling gun manufacturer Watchtower Firearms LLC, which was established in 2022, filed for Chapter 11 bankruptcy on Feb. 27, facing financial problems, including operational challenges, tax obligations, and significant vendor and service provider debt that led to its financial distress.
Related: Popular firearms ammo dealer files for Chapter 11 bankruptcy
The company likely faced rising inflation, increased interest rates, and consumers’ changing attitudes toward spending that impacted the company’s financial situation.
The Frisco, Texas, firearms maker recently released its special edition Demolitia handgun and its Raider Series rifles. It is also developing its Commander pistol that is coming soon, according to its website.
Watchtower Firearms currently offers its Apache 9mm pistol, its Bridger 7mm bolt-action rifle, and other custom and special edition rifles.
Firearms ammo maker files for bankruptcy
Also, firearms ammunition manufacturer and dealer Specialty Cartridge Inc., which operates as Atlanta Arms, filed for Chapter 11 bankruptcy protection on May 7 to reorganize its business.
The company manufactures and sells ammunition for handguns and rifles, and offers hats and t-shirts for sale. It has various targets and target pasters for purchase as well.
The Covington, Ga., ammunition maker and dealer, listed $10 million to $50 million in assets and $1 million to $10 million in liabilities in its petition. Its largest creditors include Fiocchi of America, owed over $421,000; Grandeur Fasteners, also owed over $421,000; Amerway, owed over $331,000, and Wieland Metal Services, owed over $306,000.
SCCY Firearms has reportedly shut down its business.
Image source: Shutterstock
SCCY Firearms shuts down its factory
And now, popular Daytona Beach, Fla., firearms manufacturer and dealer SCCY Firearms has closed its operations and is out of business, NRA Shooting Illustrated reported.
Related: Famous gunmaker files Chapter 11 bankruptcy
The company has not filed for bankruptcy protection at last check.
SCCY was not immediately available for comment. The company did not answer its phone lines listed on its website, and it did not return voicemail phone messages. It also did not respond to an email request for comment.
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The company’s assets, including gun computer numerical control machines and centers, injecting molding machines, lathes, office equipment, 3D printers, and other items, are reportedly scheduled to be sold to the highest bidders in an auction conducted by Prestige Auction on June 24-26.
SCCY Firearms’ assets were seized by the Volusia County Tax Office of Florida at its Daytona factory on March 11, 2025, for non-payment of tax debts totaling over $249,000.
The tax office posted a Notice of Pending Levy and Seizure on the factory’s exterior stating: “All equipment, furniture, and fixtures located inside this location regardless of status (owned, leased, loaned, or borrowed,) are subjected to taxation and are now under pending levy and seizure for unpaid tangible personal property taxes.
“Disposal of assessed property prior to satisfaction of the tax lien is a violation of a Florida statute Chapter 818 and is punishable by one year imprisonment and/or $1,000 fine,” the notice stated.
The amount due on March 11 was $249,932.38.
The notice advised “Contact revenue recovery before proceeding,” with a phone number and email listed.
If the company makes a tax payment to the county, the seizure and auction process can be halted. The county has also been talking with the company’s landlord and the lender who loaned SCCY the money to purchase the equipment to arrange a payment to release the equipment to the lender, The Outdoor Wire reported.
Joe Roebuck, a mechanical engineer and tool-and-die-maker, founded SCCY in 2003. SCCY’s first manufactured gun, the CPX-1 pistol, was first sold in 2005. The company was listed in the Top 10 among domestic pistol manufacturers in volume in 2022, according to Shooting Illustrated.
Related: Struggling wine and spirits company files Chapter 11 bankruptcy
