Firearms dealers continue to battle decreasing sales that have forced certain retailers to file for bankruptcy protection over the last year.Among the firearms companies filing for bankruptcy in 2026 are Attica, N.Y.-based Sagebrush Armory, which filed for bankruptcy on March 24, 2026, and firearms maker and dealer Custombilt Firearms Manufacturing LLC, which filed for Chapter 11 bankruptcy Feb. 8, 2026, after battling the Bureau of Alcohol, Tobacco, Firearms, and Explosives over its license in 2023 and 2024.And now, Hutco Corporation, the owner of the Delta Hawk Sportsman Gun & Pawn chain of stores, filed for Chapter 11 bankruptcy to reorganize its businesses, facing multiple civil claims.Hutco Corporation files for bankruptcyThe Anderson, Calif.-based diversified support services provider, filed its petition in the U.S. Bankruptcy Court for the Eastern District of California on July 10, listing over $159,000 in assets and over $337,000 in liabilities, according to court papers.Hutco did not give a specific reason for filing for bankruptcy. The debtor was not immediately available for comment.Hutco’s largest creditors include United Capital Experts LLC, owed over $115,000 on a disputed civil claim; Kapitus Servicing, owed over $69,000 on a loan; Mint Funding, owed over $40,000 on a disputed loan amount; Litefund Solutions LLC, owed over $37,000 on a civil claim; Cylerity Corporation, owed over $30,000 on a loan; and the State Compensation Insurance Fund, owed over $20,000.
Firearms sales have declined in 2025 and early 2026, while selling prices have increased by 5.4% in the first quarter of 2026.Shutterstock
Hutco operates multiple locationsDelta Hawk Sportsman Gun & Pawn, a federally licensed firearms dealer with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, has locations in Anderson, and Redding, Calif. The stores are still operating at last check on Sept 12, 2026.The company also operates its website, pawnshop4u.com, which will buy, sell, loan, and sell on consignment. The company seeks to purchase firearms, tools, gold, silver, jewelry, watches, bicycles, ATVs, RVs, automobiles, and electronics.The debtor also operates a security services firm, Delta Hawk Protective Agency and Investigations, located at the debtor’s headquarters, 2700 West Street in Anderson, which was listed on the petition.Hutco operates a pre-owned vehicle dealership in Anderson, CarPawn4U, which buys, sells, and pawns automobiles and motorcycles. The dealership will buy vehicles, sell vehicles, and provide cash loans to auto owners through its Cars4Pawn service.Another of the parent company’s businesses is Designated Driver Services, which provides medical transport for patients and medical courier services for specimens, prescriptions, laboratory materials, medical supplies, and confidential medical documentation.Sales declined in 2025 and early 2026Gun dealers have struggled over the last year as 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.“Rifles were the most resilient among the major firearm categories, shotguns remained the weakest, and suppressors continued to stand out with 53.1% same-store unit growth year over year,” Tactical Wire reported in its Q1 2026 Shooting Sports Retail Report. 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.Firearms taxes declined on January 1Industry experts believed 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.But not enough firearm buyers took advantage of the new $0 National Firearms Act tax pricing to significantly turn the industry around, as gun sales continued declining in January 2026 by 0.7% compared to purchases in the same month in 2025, per the National Shooting Sports Foundation, American Rifleman reported.The foundation estimated 1.198 million firearms were purchased in January 2026, based on FBI National Instant Criminal Background Check System data, compared to 1.207 million in January 2025.Hutco Corporation businesses:Delta Hawk Sportsman Gun & PawnDelta Hawk Protective Agency and InvestigationsCarPawn4UDesignated Driver Services Source: BK AlertsRelated: 66-year-old burger chain franchisee files Chapter 11 bankruptcy