Firearms manufacturers and dealers faced a slowdown in sales in 2025 that contributed to economic issues for gun companies that closed businesses or filed for bankruptcy protection.

Gun enthusiasts have pulled back on buying firearms in 2025 as their favorite dealers shut their doors.

Sales of firearms 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.

Analysts said a slowdown in the third quarter of 2025 was wakeup call, but the slowdown continued.

“Slow demand was expected, but slow reaction is not,” Kaleb Seymour, vice president of data and analytics at Gearfire, told SGB Media. “The third quarter was a wake-up call. The question now is who will adjust before year-end and who will get caught waiting.”

Gun sales declined 3.4% in December

Gun sales in December 2025 dropped 3.4% to about 1.58 million compared to about 1.64 million in December 2024.

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 report said.

On New Year’s Day 2026, 150,000 NFA applications were submitted to the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

The National Firearms Act tax elimination was part of President Donald Trump’s Big Beautiful Bill, signed into law on July 4, 2025.

Firearm maker closes operations

Firearms manufacturers that closed down operations and filed for bankruptcy in 2025 included SCCY Industries LLC, whose assets were seized by the Volusia County Tax Office of Florida at its Daytona factory on March 11, 2025, for non-payment of tax debts of almost $250,000.

The Daytona Beach, Fla., firearms manufacturer filed its petition in the U.S. Bankruptcy Court for the Middle District of Florida on Aug. 1, 2025, listing $1 million to $10 million in assets and liabilities.

Custombilt Firearms Manufacturing files for Chapter 11 bankruptcy after a license battle with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

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Custombilt Firearms files for bankruptcy

And now, struggling firearms maker and dealer Custombilt Firearms Manufacturing LLC has filed for Chapter 11 bankruptcy after battling the Bureau of Alcohol, Tobacco, Firearms, and Explosives over its license in 2023 and 2024.

The Overland Park, Kan.-based firearms company filed its petition in the U.S. Bankruptcy Court for the District of Kansas in Kansas City on Feb. 6, 2026, according to court papers, BK Data reported.

The debtor, who did not specify a reason for filing for bankruptcy, listed $100,000 to $500,000 in assets and $1 million to $10 million in liabilities, according to RK Consultants.

No rifles or pistols for sale

Custombilt‘s website shows no rifles or pistols for sale, but certain parts are listed, including complete uppers, complete lowers, multical stripped lower, CFM M16 bolt carrier group, and trigger guards.

The website also offers apparel for sale, such as its own branded t-shirts and hats.

The gunmaker and retailer’s website lists five dealers, including the company’s dealer The Bullet Hole in Overland Park, Osage Gun and Pawn in Sedalia, Mo., Godfrey’s Indoor Ranges & Tactical Supply in Junction City, Kan., Charger Arms in Lyndon, Kan., and its own online firearms dealer, Ranier Arms Online.

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“We are a firearms manufacturing company that builds AR9s, AR15s, and AR10s using some proprietary parts along with quality parts from around the industry,” the company asserted on its Facebook page.

The debtor has not posted a new message on its Facebook page since Nov. 28, 2022, according to the most recent post on the page.

Declining firearms sales:

• December 2024, 1.64 million guns sold
• December 2025, 1.58 million guns sold, 3.4% decline year-over-year
• 2024, 15.2 million guns sold.
• 2025, 14.6 million guns sold, 4.1% decline year-over-year.

The debtor’s firearms dealer’s license, which was issued by the Bureau of Alcohol, Tobacco, Firearms, and Explosives in 2018, was revoked by ATF on July 6, 2023, for allegedly failing to comply with federal law and regulations relating to the sale or disposition of firearms, according to a complaint filed in the U.S. District Court by Custombilt against the Department of Justice and ATF on July 20, 2023, Court Listener reported.

The plaintiff’s amended complaint was dismissed without prejudice by Judge Brooks G. Severson on April 30, 2024, which allows the plaintiff to refile the complaint if it wishes.

A spokesperson for the company was not immediately available for comment.

Related: 54-year-old Dick’s Sporting Goods rival closing, no bankruptcy

Custombilt’s dealer list:

• The Bullet Hole in Overland Park.
• Osage Gun and Pawn in Sedalia, Mo.
• Godfrey’s Indoor Ranges & Tactical Supply in Junction City, Kan.
• Charger Arms in Lyndon, Kan.
• Online firearms dealer, Ranier Arms Online.

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