Firearms retailer files Chapter 11 bankruptcy as gun sales drop

Firearms retailer files Chapter 11 bankruptcy as gun sales drop

Kirk O’Neil

Mon, August 31, 2026 at 6:33 PM GMT+3 3 min read

Guns and ammunition retailers have faced financial distress, leading to store closings and bankruptcy filings as sales have fallen significantly over the last two years.

Industry experts believe some of the decline in sales might have resulted from buyers delaying purchases to take advantage of the reduction in the National Firearms Act tax from $200 to $0 beginning Jan. 1, 2026, the National Rifle Association's American Rifleman reported. The decline of sales, however, has continued in 2026.

Financial issues had led firearms and ammunition retailer White Oak Armory LLC to file for Chapter 11 bankruptcy to reorganize its business, owing a disputed tax debt to the Tennessee Department of Revenue.

White Oak Armory files for bankruptcy

White Oak Armory filed its petition in the U.S. Bankruptcy Court for the Eastern District of Tennessee on Aug. 24, listing $500,000 to $1 million in assets and liabilities. The petition did not reveal whether the company's sales had declined, and the debtor did not give a specific reason for filing for bankruptcy in its petition.

The retailer was not immediately available for comment. The firearms dealer's website and telephone were still operating on Aug. 30.

The Cleveland, Tenn.-based debtor's largest creditor is the Tennessee Department of Revenue, owed $600,000 in disputed debt. The firearms and ammunition dealer also listed Cleveland Utilities and Spectrum as creditors but did not include the amounts of debt owed to each creditor.

No inventory listed on website

White Oak Armory's website did not have any handgun, rifle or shotgun inventory available for sale on Aug. 30. The website also did not have any ammunition, optics or gear for sale. Some parts and accessories were available, however.

Firearms sales declined 4.1% to about 14.6 million in 2025, compared to over 15.2 million in 2024, according to the National Shooting Sports Foundation, the National Rifle Association's American Rifleman reported.

New firearm unit sales declined by 7.6% year over year in the first quarter of 2026, and revenue declined by 2.6%, while average selling price increased by 5.4%, according to Tactical Wire.

Gun sales declined in 2026

Total firearms unit sales subsequently declined by 3.8% year over year in the second quarter of 2026 and dealers also cut inventory by 9.2%, with rifles down 12.3%, shotguns declining 9.4%, and handguns falling 7.7%, according to Gearfire's RetailBI Q2 2026 Shooting Sports report on sales and inventory.

New rifle sales grew by 8.1%, while new handgun sales declined 5.6% and shotgun sales plummeted 17%.

While overall sales declined, revenue increased by 4.5% as the average firearm sold for 8.7% more than in the previous year. The report noted that consumers were focused on buying high-end rifles and handguns instead of entry-level models.

Other retailers file for bankruptcy

Several firearms retailers that filed for bankruptcy this year, including Hutco Corporation, the owner of the Delta Hawk Sportsman Gun & Pawn chain of stores, which filed for Chapter 11 bankruptcy on July 10 to reorganize its businesses, facing multiple civil claims.

Other firearms companies filing for bankruptcy in 2026 include firearms maker and dealer Custombilt Firearms Manufacturing LLC, which filed for Chapter 11 bankruptcy Feb. 8, 2026, after battling the Bureau of Alcohol, Tobacco, Firearms, and Explosives over its license in 2023 and 2024.

Related: Forget roller dogs, 7-Eleven upgrades its pizza

This story was originally published by TheStreet on Aug 31, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.