The U.S. firearms industry has a long history of surviving economic problems, with some of the most well-known companies filing for bankruptcy and emerging as strong companies.
The firearms industry in the last two years has faced all of the same economic challenges that other industries have endured, including inflation, high interest rates, and reduced consumer spending. Guns and ammo makers still await any effects that new tariffs will have on the industry.
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Iconic firearms company Remington, whose history dates back over 200 years, has been a leader in developing rifles, handguns, and ammunition over the years. Times were not always prosperous for the company, as it was forced to file for bankruptcy protection in 2018 and 2020.
Related: Popular arcade restaurant chain files for Chapter 11 bankruptcy
The company was sold following the 2020 bankruptcy filing, and it emerged as a new company known as RemArms that same year.
Colt Manufacturing’s founder Sam Colt had success in developing, manufacturing, and selling firearms over the years after he patented the first revolving-cylinder pistol in 1836 and began manufacturing in Paterson, N.J.
Colt eventually faced financial distress, and in 2015, it filed for Chapter 11 bankruptcy to reorganize and sell its assets.
Not every historic arms manufacturer has had financial difficulties leading to bankruptcy.Â
Springfield, Mass.-based Smith & Wesson, which was founded in 1852, is the top gun manufacturer in the U.S., according to the most recent data from ATF. The company, however, has remained a financially sound company and never filed for bankruptcy.
Watchtower Firearms filed for bankruptcy
Newer gun manufacturer, Watchtower Firearms LLC, which was established in 2022, recently released its special edition Demolitia handgun and its Raider Series rifles.
The Frisco, Texas, firearms maker is also developing its Commander pistol that is coming soon, according to its website. It currently offers its Apache 9mm pistol, its Bridger 7mm bolt-action rifle, and other custom and special edition rifles.
Watchtower Firearms on Feb. 27 filed for Chapter 11 bankruptcy, facing a multitude of financial problems, including operational challenges, tax obligations, and significant vendor and service provider debt that led to its financial distress.
The company likely faced rising inflation, increased interest rates, and consumers’ changing attitudes toward spending impacted the company’s financial situation.
The debtor listed $10 million to $50 million in assets and liabilities in its petition and indicated funds would be available to distribute to unsecured creditors.
Atlanta Arms filed for Chapter 11 bankruptcy to reorganize.
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Atlanta Arms files for bankruptcy
Finally, national firearms ammunition manufacturer and dealer Specialty Cartridge Inc., which operates as Atlanta Arms, filed for Chapter 11 bankruptcy protection to reorganize its business.
Related: Major trucking company files Chapter 11 bankruptcy to restructure
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 filed in the U.S. Bankruptcy Court for the Northern District of Georgia on May 7.
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The debtor’s 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.
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.
