Update: Freedom Munitions issued a response about their restructuring. We’ve added the comments to the article below.
Freedom Munitions is filing for Chapter 11 bankruptcy. It’s filing for bankruptcy along with other related brands including Howell Machine and X-Treme Bullets. The brands are owned by Howell Munitions & Technology and all four entities are filing in Reno, Nev.
Chapter 11 bankruptcy allows companies to reorganize their structure and debt. The Freedom Munitions website is still up and running where they sell guns, ammo and other shooting accessories. The X-Treme Bullets page is up and working, too.
“We would like to take this time to assure our valuable customers of the ongoing commitment to provide affordable ammunition to shooting sport enthusiasts around the country,” said Freedom Munitions.
“Freedom Munitions will continue to manufacture ammunition, ship orders and provide the best service we possibly can,” they added. “We are still here and plan on maintaining a steady path of manufacturing cost effective ammunition and moving towards a positive future.”
Freedom Munitions is known for its inexpensive target and plinking ammunition. They manufacture and remanufacture popular ammunition and largely sell it online. They also sell other prominent brands of ammo.
Freedom Munitions had a physical retail location in Houston that they closed earlier this year.
It’s a bit of a surprise as ammunition sales are still strong after years of surges in demand and slow increase in supplies. Ammo makers around the world have ramped up production to meet the increasing American appetite for ammo.
The overwhelming increase in demand for ammo peaked a few years ago when buyers completely wiped out ammunition stores across the country. Prices went through the roof and many people simply stopped shooting. Even some police departments ran out of ammunition for training and qualifications.
The increase in demand was largely a response to the Obama-era push for increased gun control and ammunition bans. It was also intensified by a similar increase in the number of new gun owners just then getting into shooting.
Since then almost every ammo manufacturer has expanded with prices finally stabilizing. And while under Trump there is less pressure for more gun control, there are still many politicians and gun control advocates calling for gun, magazine and ammo restrictions.
Because of this and the ever-expanding body of gun owners, it’s pretty easy to sell ammo. Why Freedom Munitions and its family are going bankrupt is unclear.
It’s possible that Freedom Munitions over-expanded during the gun and ammo sales surge and now is struggling with the slow drop in demand and prices.
It could also be a simple issue with leadership. Legendary manufacturer Remington has been struggling for years under the leadership of Cerebus Capitol Management.
Remington filed for bankruptcy multiple times in efforts to reorganize its debt. Gun owners turned away from the brand for a few reasons after Cerebus took over.
In an apparent attempt to maximize profit, Remington started cutting corners in quality control and lowered their standards for fit and finish. The company also failed to innovate and focused more on government contracts and brand recognition.
Hopefully Freedom Munitions will be able to restructure quickly and efficiently. They’re a go-to ammo supplier for shooters everywhere.