The firearms industry, including rifle, handgun, and ammunition manufacturers and retailers, have faced financial distress in 2026 that has led to bankruptcy filings.
Filings come as the industry has experienced declining sales over the last two years which have been major problem for companies trying to stay afloat.
Mead Industries files for bankruptcy
39-year-old ammunition manufacturer Mead Industries Inc. filed for Chapter 11 bankruptcy, seeking to reorganize its business, as it faces disputed lawsuit and contract claims.
The Wood River, Neb.-based bullets manufacturer filed its petition in the U.S. Bankruptcy Court for the District of Nebraska on Sept. 2, listing over $7.1 million in assets and over $6.4 million in debts.
The debtor’s largest creditors include Kentucky’s Best Hemp Inc., owed over $1.85 million in a disputed lawsuit claim; Hiawatha National Bank, owed over $1.3 million; FNBO, owed over $544,000; Gunwerks LLC, owed $346,000 in a contract dispute; company owner Gregory A. Mead, owed over $521,000 of a promissory note; and AMDG Enterprises, owed over $304,000.
Mead Industries founder Greg Mead, an avid hunter, established the company in 1977 to manufacture high-quality precision hunting bullets, as well as machinery, equipment, and components for many of the world’s leading ammunition manufacturers, according to the company’s website.
Helps produce 50 million bullets a month
The company occupies a 15,000 square-foot facility in Wood River with an on-site ballistics lab, welding shop, and full machine shop and is responsible for supplying the machinery and equipment that produces over 50 million bullets per month to the shooting industry.
Mead Industries has faced a steady decrease in gross revenue over the last three years, declining from over $2.4 million in 2024 to over $1.3 million in 2025. The debtor had generated over $1.1 million by its Sept. 2, 2026, filing date, according to the petition.
Declining revenue trend
The debtor’s decreased revenue follows a national trend of declining revenue in the firearms industry.
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.
Total firearms unit sales 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.