Firearms Market Hit by Bankruptcies as Sales Decline

The U.S. firearms and ammunition retail sector faced a wave of bankruptcies in early 2026, with White Oak Armory LLC filing for Chapter 11 in Tennessee. The company listed $500,000 to $1 million in assets and liabilities, with its largest creditor being the Tennessee Department of Revenue, owed $600,000 in disputed taxes.

Firearms Sales Drop and Industry Restructuring

■Firearms sales fell 4.1% in 2025, from 15.2 million to 14.6 million units.

■Q2 2026 saw sales decline 3.8%, with inventory cuts of 9.2%.

■Rifles dropped 12.3%, handguns 7.7%, and shotguns 9.4%.

■High-end firearms saw demand growth, while entry-level models declined.

Bankruptcies and Industry Shake-Up

■Hutco Corporation (Delta Hawk Sportsman) and Custombilt Firearms Manufacturing also filed for bankruptcy.

■Licensing disputes with the ATF were cited as key reasons.

■White Oak Armory's website showed no firearms or ammunition stock, only accessories.

The U.S. firearms sector is grappling with declining demand for affordable models and rising preference for premium firearms. This trend could ripple into global markets, prompting reassessment of pricing strategies in key regions.