Filing highlights financial pressure at the company

White Oak Armory filed for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Tennessee. The Cleveland, Tennessee-based gun and ammunition retailer said in its Aug. 24 filing that both its assets and liabilities fell in the $500,000 to $1 million range. The petition did not give a specific reason for the decline in sales or explain why bankruptcy protection was needed.

Court records show the company’s largest creditor is the Tennessee Department of Revenue. The debt to the agency was listed as $600,000 and described as disputed. The creditors list also included Cleveland Utilities and Spectrum, but the amounts owed to those companies were not disclosed separately.

The company could not be reached for immediate comment. However, its website and phone line were still operating as of Aug. 30.

Downturn in the gun market is adding financial strain

Firearms and ammunition retail has seen a sharp drop in sales over the past two years, a trend now tied to store closures and bankruptcy filings. Industry experts said some buyers may have delayed purchases in anticipation of the $200 federal firearms tax under the National Firearms Act falling to zero on Jan. 1, 2026. Still, weak sales were reported to have continued throughout 2026.

What the numbers say about the market

According to the National Shooting Sports Foundation, U.S. firearm sales fell 4.1% year over year in 2025 to about 14.6 million units. The same source said sales topped 15.2 million units in 2024. Tactical Wire data showed that in the first quarter of 2026, new firearm unit sales fell 7.6% and revenue dropped 2.6%, while average selling prices rose 5.4%.

Gearfire’s RetailBI second-quarter report said total unit sales fell 3.8% year over year, while dealer inventories dropped 9.2%. Inventory declines included rifles, down 12.3%; shotguns, down 9.4%; and handguns, down 7.7%. Over the same period, new rifle sales rose 8.1%, new handgun sales fell 5.6% and shotgun sales dropped 17%.

Higher revenue pointed to a shift toward pricier products

Even as total sales volume declined, revenue rose 4.5%, indicating a shift toward higher-priced products. The report said the average firearm selling price increased 8.7% from a year earlier. Consumers appeared to be moving away from entry-level models and toward higher-end rifles and handguns.

More Chapter 11 filings have hit the sector

As of Aug. 30, White Oak Armory’s website showed no inventory available for sale in the handgun, rifle, shotgun, ammunition, optics and gear categories. Only some parts and accessories were listed. The filing did not provide more detailed information about the company’s operations.

Other companies in the sector also filed for similar protection in 2026:

  • Hutco Corporation, owner of the Delta Hawk Sportsman Gun & Pawn chain, filed for Chapter 11 on July 10.
  • Custombilt Firearms Manufacturing LLC sought Chapter 11 protection on Feb. 8, 2026, after licensing disputes.