White Oak Armory files for Chapter 11 bankruptcy amid US firearms sales slump
The Cleveland, Tennessee-based retailer owes $600,000 in disputed tax debt to the Tennessee Department of Revenue as industry sales continue to fall.
White Oak Armory LLC, a firearms and ammunition retailer based in Cleveland, Tennessee, has filed for Chapter 11 bankruptcy to reorganise its business. The petition was lodged in the U.S. Bankruptcy Court for the Eastern District of Tennessee on 24 August 2026, listing assets and liabilities in the range of US$500,000 to US$1 million.
The company’s largest creditor is the Tennessee Department of Revenue, to whom White Oak Armory owes US$600,000 in disputed tax debt. The retailer also listed Cleveland Utilities and Spectrum as creditors, though specific debt amounts for these entities were not disclosed. The petition did not specify whether the company’s sales had declined or provide a distinct reason for the filing.
As of 30 August 2026, the retailer’s website and telephone lines remained operational. However, the online store showed no inventory for handguns, rifles, shotguns, ammunition, optics, or gear, with only limited parts and accessories available for purchase. The company was not immediately available for comment regarding its future operations.
The filing occurs against a backdrop of financial distress in the firearms and ammunition retail sector, with sales declining significantly over the past two years. Industry experts suggest that some of the downturn may be attributed to buyers delaying purchases to benefit from the reduction of the National Firearms Act tax from US$200 to zero, effective 1 January 2026.
According to the National Shooting Sports Foundation, total firearms sales in the United States fell by 4.1 per cent in 2025 to approximately 14.6 million units, down from more than 15.2 million in 2024. The decline has persisted into 2026, with new firearm unit sales dropping 7.6 per cent year-on-year in the first quarter.
In the second quarter of 2026, total firearms unit sales declined by a further 3.8 per cent year-on-year, while dealers cut inventory by 9.2 per cent. This trend follows other recent industry bankruptcies, including Hutco Corporation in July 2026 and Custombilt Firearms Manufacturing LLC in February 2026.
