Guns and ammunition retailers have faced financial distress, leading to store closings and bankruptcy filings as sales have fallen significantly over the last two years.
Industry experts believe some of the decline in sales might have resulted from buyers delaying purchases to take advantage of the reduction in the National Firearms Act tax from $200 to $0 beginning Jan. 1, 2026.
Financial issues had led firearms and ammunition retailer White Oak Armory LLC to file for Chapter 11 bankruptcy to reorganize its business, owing a disputed tax debt to the Tennessee Department of Revenue.
White Oak Armory files for bankruptcy
White Oak Armory filed its petition in the U.S. Bankruptcy Court for the Eastern District of Tennessee on Aug. 24, listing $500,000 to $1 million in assets and liabilities. The petition did not reveal whether the company's sales had declined.
The retailer's largest creditor is the Tennessee Department of Revenue, owed $600,000 in disputed debt.
No inventory listed on website
White Oak Armory's website did not have any handgun, rifle, or shotgun inventory available for sale on Aug. 30.
Gun sales declined in 2026
New firearm unit sales subsequently declined by 7.6% year over year in the first quarter of 2026, and revenue declined by 2.6%.
Other retailers file for bankruptcy
Several firearms retailers that filed for bankruptcy this year include Hutco Corporation.
