Firearms retailer files Chapter 11 bankruptcy amid declining gun sales
White Oak Armory LLC, a firearms and ammunition retailer based in Tennessee, has filed for Chapter 11 bankruptcy protection to reorganize its business. The company cited financial distress due in part to a disputed tax debt of $600,000 owed to the Tennessee Department of Revenue. As of August 24, it listed between $500,000 and $1 million in assets and liabilities. The broader firearms industry has seen declining sales over recent years, with unit sales dropping by nearly 8% year-over-year during Q1 2026 alone. Industry reports indicate that consumers are shifting toward higher-end models rather than entry-level purchases. This trend is part of a larger pattern where several other gun retailers have also filed for bankruptcy in 2026. The decline has been attributed to factors such as delayed purchases ahead of the National Firearms Act tax reduction, which took effect on January 1, 2026. Despite lower unit sales, average selling prices increased by over 5%, helping some companies maintain or slightly increase revenue.
