The firearms and ammunition retail sector has experienced substantial financial challenges, prompting multiple store closures and bankruptcy filings as customer demand has weakened. Industry observers attributed some of the initial sales decline to buyers postponing purchases in anticipation of a reduction in the National Firearms Act tax, which fell from $200 to $0 beginning Jan. 1, 2026. However, sales declines have persisted throughout 2026 despite this tax change taking effect.
White Oak Armory LLC, a Cleveland, Tennessee-based firearms retailer, filed for Chapter 11 bankruptcy reorganization on Aug. 24 in the U.S. Bankruptcy Court for the Eastern District of Tennessee. The company listed assets and liabilities ranging from $500,000 to $1 million. The retailer’s largest creditor is the Tennessee Department of Revenue, which is owed $600,000 in disputed debt. White Oak Armory also listed Cleveland Utilities and Spectrum as creditors. At the time of the filing, the company’s website and telephone remained operational, though inventory was significantly depleted with no handguns, rifles, shotguns, ammunition, optics, or gear listed for sale.
Sales data across the broader firearms industry shows consistent declines. According to the National Shooting Sports Foundation, firearms sales fell 4.1% to approximately 14.6 million units in 2025 from over 15.2 million in 2024. In the first quarter of 2026, new firearm unit sales declined 7.6% year-over-year, with revenue down 2.6%, though average selling prices increased 5.4%. Second quarter 2026 data indicated total firearms unit sales fell 3.8% year-over-year, with dealers reducing inventory by 9.2%.
Within specific product categories, rifles declined 12.3%, shotguns fell 9.4%, and handguns dropped 7.7% in the second quarter. However, new rifle sales grew 8.1% while new handgun sales declined 5.6% and shotgun sales plummeted 17%. Despite overall unit sales declines, revenue increased 4.5% as average firearm prices rose 8.7%. Consumer purchasing patterns shifted toward high-end rifles and handguns rather than entry-level models.
Multiple firearms retailers have filed for bankruptcy protection in 2026. Hutco Corporation, parent company of the Delta Hawk Sportsman Gun & Pawn store chain, filed for Chapter 11 bankruptcy on July 10 while facing multiple civil claims. Additionally, firearms manufacturer and dealer Custombilt Firearms Manufacturing LLC filed for Chapter 11 bankruptcy Feb. 8, 2026, following disputes with the Bureau of Alcohol, Tobacco, Firearms, and Explosives regarding its license.
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