The U.S. firearms industry has faced financial distress in 2025 as gun manufacturers and ammo producers have closed down and, in some cases, filed for bankruptcy protection.
Several economic issues are the main reasons for the firearm industry’s distress.
Most companies blamed rising inflation, increased interest rates, and consumers’ changing attitudes toward spending for their economic problems.
Related: Popular music star’s company files for Chapter 11 bankruptcy
The industry’s issues led to retail firearm sales declining in the first quarter of 2025 by 9.6% year-over-year with revenue dropping 11.5%, according to a report from RetailBI as American Rifleman reported.
Rifle sales declined the most, by 12.3%, while handguns fell 9% and shotguns dropped by 7.5%.
Firearm sales decline:
- Rifle sales: 12.3% decline.
- Handgun sales: 9% decline.
- Shotguns: 7.5% decline.
- All sales: 9.6% decline.
Some gun makers have also shut down operations for economic issues without filing for bankruptcy.
Image source: Shutterstock
Defunct SCCY Industries LLC files for bankruptcy
In the case of firearms manufacturer SCCY Industries LLC, the company filed for Chapter 11 bankruptcy over four months after shutting down its operations.
The Daytona Beach, Fla., firearms manufacturer filed its petition in the U.S. Bankruptcy Court for the Middle District of Florida on Aug. 1, listing $1 million to $10 million in assets and liabilities.
The debtor’s largest creditors include Center Point Business Park, owed over $599,000; County of Volusia, owed over $406,000, and BFB, owed over $283,000.
SCCY Industries LLC top creditors:
- Center Point Business Park, owed over $599,000.
- County of Volusia, owed over $406,000.
- BFB, owed over $283,000.
SCCY’s 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 of almost $250,000.
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.”
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.
It is unclear what assets SCCY still possessed.
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Firearms companies file for bankruptcy protection
SCCY’s bankruptcy follows a petition by a relatively new U.S. firearms manufacturer, Watchtower Firearms LLC, which filed for Chapter 11 bankruptcy on Feb. 27, 2025, facing financial problems.
The debtor, which was established in 2022, said operational challenges, tax obligations, and significant vendor and service provider debt led to its financial distress.
The Frisco, Texas, firearms maker offers its Apache 9mm pistol, its Bridger 7mm bolt-action rifle, and other custom and special edition rifles.
Related: Popular beverage brand files Chapter 11 bankruptcy
Firearms ammunition manufacturer and dealer Specialty Cartridge Inc., which operates as Atlanta Arms, filed for Chapter 11 bankruptcy protection on May 7, 2025, 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.
Most recently, firearms, ammunition, and indoor range retailer Bare Arms LLC filed for Chapter 11 bankruptcy protection for the second time in two years on July 21, 2025, because of financial distress.
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.
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