The firearms industry, including rifle, handgun, and ammunition manufacturers and retailers, have faced financial distress in 2026 that has led to bankruptcy filings.<\/p>\n
Filings come as the industry has experienced declining sales over the last two years which have been major problem for companies trying to stay afloat.<\/p>\n Shutterstock<\/p>\n<\/figcaption><\/figure>\n 39-year-old ammunition manufacturer Mead Industries Inc.<\/a> filed for Chapter 11 bankruptcy, seeking to reorganize its business, as it faces disputed lawsuit and contract claims.<\/p>\n The Wood River, Neb.-based bullets manufacturer filed its petition in the U.S. Bankruptcy Court for the District of Nebraska on Sept. 2, listing over $7.1 million in assets and over $6.4 million in debts.<\/p>\n The debtor’s largest creditors include Kentucky’s Best Hemp Inc., owed over $1.85 million in a disputed lawsuit claim; Hiawatha National Bank, owed over $1.3 million; FNBO, owed over $544,000; Gunwerks LLC, owed $346,000 in a contract dispute; company owner Gregory A. Mead, owed over $521,000 of a promissory note; and AMDG Enterprises, owed over $304,000. <\/p>\n Mead Industries founder Greg Mead, an avid hunter, established the company in 1977 to manufacture high-quality precision hunting bullets, as well as machinery, equipment, and components for many of the world’s leading ammunition manufacturers, according to the company’s website.<\/p>\n The company occupies a 15,000 square-foot facility in Wood River with an on-site ballistics lab, welding shop, and full machine shop and is responsible for supplying the machinery and equipment that produces over 50 million bullets per month to the shooting industry.<\/p>\n Mead Industries has faced a steady decrease in gross revenue over the last three years, declining from over $2.4 million in 2024 to over $1.3 million in 2025. The debtor had generated over $1.1 million by its Sept. 2, 2026, filing date, according to the petition.<\/p>\n The debtor’s decreased revenue follows a national trend of declining revenue in the firearms industry. <\/p>\n Firearms sales declined 4.1% to about 14.6 million in 2025, compared to over 15.2 million in 2024, according to the National Shooting Sports Foundation, the National Rifle Association’s American Rifleman<\/a> reported.<\/p>\n New firearm unit sales declined by 7.6% year over year in the first quarter of 2026, and revenue declined by 2.6%, while average selling price increased by 5.4%, according to Tactical Wire<\/a>.<\/p>\n Total firearms unit sales declined by 3.8% year over year in the second quarter of 2026 and dealers also cut inventory by 9.2%, with rifles down 12.3%, shotguns declining 9.4%, and handguns falling 7.7%, according to Gearfire’s RetailBI Q2 2026 Shooting Sports<\/a> report on sales and inventory.<\/p>\n New rifle sales grew by 8.1%, while new handgun sales declined 5.6% and shotgun sales plummeted 17%.<\/p>\n While overall sales declined, revenue increased by 4.5% as the average firearm sold for 8.7% more than in the previous year. The report noted that consumers were focused on buying high-end rifles and handguns instead of entry-level models.<\/p>\n Several firearms retailers have filed for bankruptcy this year, including firearms and ammunition retailer White Oak Armory LLC<\/a>, which filed for Chapter 11 bankruptcy on Aug. 24 to reorganize its business, owing a disputed tax debt to the Tennessee Department of Revenue<\/a>.<\/p>\n Hutco Corporation, the owner of the Delta Hawk Sportsman Gun & Pawn chain of stores, which filed for Chapter 11 bankruptcy<\/a> on July 10 to reorganize its businesses, facing multiple civil claims.<\/p>\n Other firearms companies filing for bankruptcy in 2026 include firearms maker and dealer Custombilt Firearms Manufacturing LLC<\/a>, which filed for Chapter 11 bankruptcy<\/a> Feb. 8, 2026, after battling the Bureau of Alcohol, Tobacco, Firearms, and Explosives over its license in 2023 and 2024.<\/p>\nMead Industries files for bankruptcy<\/h2>\n
Helps produce 50 million bullets a month<\/h2>\n
Declining revenue trend<\/h2>\n
Firearms sold for higher prices<\/h2>\n