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, the National Rifle Association’s American Rifleman reported. The decline of sales, however, has continued in 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, and the debtor did not give a specific reason for filing for bankruptcy in its petition.
The retailer was not immediately available for comment. The firearms dealer’s website and telephone were still operating on Aug. 30.
The Cleveland, Tenn.-based debtor’s largest creditor is the Tennessee Department of Revenue, owed $600,000 in disputed debt. The firearms and ammunition dealer also listed Cleveland Utilities and Spectrum as creditors but did not include the amounts of debt owed to each creditor.
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. The website also did not have any ammunition, optics or gear for sale. Some parts and accessories were available, however.
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 reported.
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.
Gun sales declined in 2026
Total firearms unit sales subsequently 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 report on sales and inventory.
New rifle sales grew by 8.1%, while new handgun sales declined 5.6% and shotgun sales plummeted 17%.