High-end gun, firearm manufacturer files Chapter 11 bankruptcy
A number of firearms companies have struggled since the threat of guns being banned, or at least limited in some way, has gone away.
When a Democrat controls the White House or Democrats control Congress, the gun industry can push customers to buy by suggesting that new regulations might be coming.
Even though no meaningful gun regulations or limitations have been passed in decades, it's a credible threat that leads to people buying.
Firearms companies used that marketing tactic during the Barack Obama administration. It worked, but the numbers never fell back to pre-Obama levels, even with Republicans in office.
That used to be how it worked. In reality, gun sales started to climb in 2010 (Barack Obama's first year in office) and have skyrocketed since then. The United States does not actually track how many firearms are sold each year but it does release FBI background check numbers.
Those are not exact, since one check could equal more than one gun, but it's the closest federal approximation for firearm sales.
FBI NICS background checks by year (2010-2024)
- 2010: 14,033,824
- 2011: 16,454,134
- 2012: 19,592,303
- 2013: 21,093,273
- 2014: 23,141,970
- 2015: 23,141,970
- 2016: 25,232,078
- 2017: 25,232,078
- 2018: 26,000,000
- 2019: 28,369,750
- 2020: 39,695,315
- 2021: 38,876,673
- 2022: 31,596,646
- 2023: 29,854,176
- 2024: 28,097,205
Source: FBI Image source: Shutterstock
Central Florida Firearms files Chapter 11 bankruptcy
Gun companies can no longer blame fluctuating demand when they struggle. As you can see above, sales essentially doubled while Obama was in office, and the numbers never fell back to 2010 levels.
Central Florida Firearms, which does business under the Live Free Armory name, did not share a reason for its financial troubles in its Chapter 11 filing.
The company does share its mission on its website.
Our Mission: Live Free Armory is committed to pushing the boundaries of firearm craftsmanship and innovation using our cutting-edge technology. We redefine excellence, delivering top-tier products that set the industry standard for quality, ensuring a lifetime of confidence and reliability.
The company, launched in 2014, considers itself "a force of innovation and excellence in the firearms industry."
Related: Popular beer brand and brewery files Chapter 11 bankruptcy
The company did pick a high-innovation area to call home.
"Located on the Florida Space Coast, our state-of-the-art facility is the backbone of our production, reflecting our well-established reputation for exceptional manufacturing and design. Our success hinges on our skilled team, who consistently uphold our high standards," the company shared.
Central Florida Firearms filed for bankruptcy on Sept. 26 and has continued to operate since filing.
Central Florida Firearms, (doing business as Live Free Armory) Chapter 11 bankruptcy
- The filing was made in the U.S. Bankruptcy Court for the Middle District of Florida.
- The company lists roughly $5.2 million in assets and $12.7 million in liabilities.
- The case number is 25-06150
- The filing indicates that there will be funds available for distribution to unsecured creditors.
Source: Bondoro
A number of firearms companies have filed Chapter 11 bankruptcy
Remington, a well-known name in the firearms space, shared why it was facing financial hardship in its Chapter 11 bankruptcy filing.
Despite the historical strength of the debtors' various brands, the debtors have experienced a significant decline in sales and revenues in the approximately one-year period preceding the petition date. As a result, the debtors have faced increasing difficulty in meeting certain benchmarks in order to maintain borrowing capacity under their ABL Facility.
More specifically, throughout 2016, the debtors were increasing production rates based on inputs from its key markets to meet expected demand for its products in 2017. Those demands, however, ultimately did not materialize.
…At the same time, however, the firearms and ammunition markets experienced significant competitive market pricing pressures from the higher inventory levels industry-wide and the accelerating reduction in demand. Based on the foregoing, the debtors' financial performance began experiencing significant year-over-year deterioration since the beginning of 2017.
Remington has not been the only company in the firearms space to file for bankruptcy.
Key firearms industry Chapter 11 bankruptcy filings
- Remington Outdoor Company / Remington Arms: Filed July 2020 (second bankruptcy, sold off assets in pieces)
- National Rifle Association (NRA): Filed January 2021 (attempted Texas reincorporation, case dismissed)
- Watchtower Firearms, LLC: Filed February 2025 (Northern District of Texas, $10M–$50M assets/liabilities range)
- Central Florida Firearms, LLC (Live Free Armory): Filed September 2025 (Chapter 11, approx. $12.7M liabilities vs. approx. $5.2M assets)
Dru Stevenson, a law professor at South Texas College of Law Houston, believes that demand has fallen, despite the background check numbers.
“During the pandemic, people were worried about societal collapse in one way or another. If you didn’t own a gun and you decided you better get one for self defense, you went and bought your gun, and now you’re done,” he told CNBC.
Related: US auto parts supplier files Chapter 11 bankruptcy; 'billions in debt'
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