The U.S. firearms industry faced economic hardship in 2025 as gun manufacturers, ammunition producers, firearms retailers, and shooting ranges filed for bankruptcy protection to reorganize or sometimes shut down their businesses.
The industry over the last two years faced many of the same economic challenges that other industries have endured, including inflation, high interest rates, and reduced consumer spending.
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Guns and ammo makers are still bracing for any effects that new tariffs will have on the industry.
Related: CVS rival pharmacy chain files for Chapter 11 bankruptcy
Gun and ammo makers filed for bankruptcy
Fledgling gun manufacturer Watchtower Firearms LLC on Feb. 27, 2025, filed for Chapter 11 bankruptcy, facing operational challenges, tax obligations, and significant vendor and service provider debt that led to its financial distress.
The Frisco, Texas, company was established in 2022 and offers its Apache 9mm pistol, its Bridger 7mm bolt-action rifle, and other custom and special edition rifles.
Firearms ammunition manufacturer and dealer Specialty Cartridge Inc., which operates as Atlanta Arms, filed for Chapter 11 bankruptcy protection to reorganize its business on May 7, 2025.
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.
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Bare Arms files for Chapter 11 bankruptcy protection
Firearms, ammunition, and indoor range retailer Bare Arms LLC filed for Chapter 11 bankruptcy protection for the second time in two years because of financial distress.
Related: Home Depot rival files Chapter 11 bankruptcy in distress
The Ashland, Ky.-based debtor filed its petition in the U.S. Bankruptcy Court for the Eastern District of Kentucky on July 21, 2025, listing $1 million to $10 million in assets and liabilities, including $2.5 million owed to Burke & Herbert Bank & Trust, $500,000 owed to the U.S. Small Business Administration, and claims owed to various mall operators and retail landlords.
The debtor’s petition did not state a specific reason for the bankruptcy filing, but it’s likely that events leading up to Bare Arms’ first Chapter 11 filing on May 15, 2023, played a role in its second bankruptcy filing.
Prohibited ammo causes destructive fire at range
Bare Arms suffered a significant financial loss following a fire on June 19, 2022, at its Huntington, W.V., indoor range caused by a customer who used prohibited incendiary projectiles as rounds for his firearm, according to court papers from the debtor’s first bankruptcy filing reported by Pacer Monitor.
The fire caused about $1.3 million in damages, but the debtor was underinsured, as the range and store were not insured for loss of income, according to court papers.
More firearms:
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By May 14, 2023, the debtor was only able to open a portion of the range, and it filed for Chapter 11 protection for the first time on May 15, 2023, to reorganize its debts.
Bare Arms began operating at full capacity again by July 10, 2023.
Bare Arms was established in June 2016 in Ashland, Ky., as a gun range and retail store, and in 2018 expanded with a second gun range and retail store in Huntington, W.V. It also opened a restaurant, Bombshells, Burgers & BBQ in Huntington.
Bare Arms expanded to 14 locations in 7 states
The company expanded between 2018 and 2023, opening 14 Bare Arms Trading Company retail outlets, selling firearms, gear and apparel, in seven states, including Kentucky, Tennessee, West Virginia, Texas, Alabama, South Carolina, and Georgia.
The company had 11 retail stores when it filed for bankruptcy in May 2023. The company currently operates eight locations in five states, including Alabama, Kentucky, Tennessee, Texas, and West Virginia. It operates indoor shooting ranges in Ashland and Huntington.
Related: Another major trucking operation files Chapter 11 bankruptcy
