The firearms industry has been resilient throughout the nation’s history, dating back to its early years in 1816 when Eliphalet Remington II handcrafted his first rifle barrel at his father’s forge and brought it to Utica, N.Y., to fabricate into a flintlock rifle, according to the Remington website.
Over the years, Remington evolved, manufacturing rifles, handguns, and ammunition. The company filed for bankruptcy twice, in 2018 and 2020, before its assets were sold and it emerged as a new company known as RemArms that same year.
Sam Colt contributed his firearms legacy after he patented the first revolving-cylinder pistol in 1836 and began manufacturing in Paterson, NJ, according to the company’s website.
Colt Manufacturing’s success in developing, manufacturing, and selling firearms over the years continued until 2015 when it filed for Chapter 11 bankruptcy to reorganize and sell its assets.
Another iconic gun manufacturer is Springfield, Mass.-based Smith & Wesson, which was founded in 1852, is the top gun manufacturer in the U.S., according to the most recent data from ATF. The company, however, has never filed for bankruptcy.
A new gun manufacturer, Watchtower Firearms LLC, was established in 2022 and now offers its Apache 9mm pistol, its Bridger 7mm bolt action rifle, and other custom and special edition rifles.
The fledgling company is still developing new products, such as its Commander pistol and Raider Series rifle that its website says is coming soon.
Watchtower Firearms files for bankruptcy
And now, Watchtower Firearms on Feb. 27 filed for Chapter 11 bankruptcy, facing a multitude of financial problems.
The Frisco, Texas, firearms maker faced operational challenges, tax obligations, and significant vendor and service provider debt that led to its financial distress.
More bankruptcy:
- Popular breakfast dining chain files for Chapter 11 bankruptcy
- Huge national car wash chain files Chapter 11 bankruptcy
- Troubled trucking company files for Chapter 11 bankruptcy
It’s likely that rising inflation, increased interest rates, and consumers’ changing attitudes toward spending impacted the company’s financial situation.
The debtor listed $10 million to $50 million in assets and liabilities in its petition filed in the U.S. Bankruptcy Court for the Northern District of Texas and indicated funds would be available to distribute to unsecured creditors.
Watchtower’s largest unsecured creditors include Dasun USA/Alpha Foxtrot, owed over $686,000; Department of Treasury, owed over $409,000; and 2020 Exhibits Inc., owed over $359,000.
