Sunday, 21 Jul 2019

Is Freedom Ammunition Closing Its Doors…Probably Not

Is Freedom Ammunition Closing Its Doors…Probably Not


While grumblings about the Trump slump have seemed to fade away, we are another potential loss in the firearms industry. Howell Munitions, the owner of Freedom Munitions, has petitioned a court for bankruptcy protection. The Trump slump, in reality, is the end of panic buying spurned by anti-gun politicians in office. It’s a return to normalcy, and it seems like some companies are having difficulty with this change. Gun sales have still been at an all-time high, but ammunition sales seem to be slipping. Ammunition sales are hard to track, unlike NICS check so who knows how hard the ammo industry has been hit.

Freedom Munitions is well known for making very affordable ammo, including reloads, the American Steel brand and new production ammo. They even offered a variety of subsonic ammo in their Hush line and even defensive ammo in their X-Def line. When it came to bulk ammo for sale, there is little to no doubt that Freedom Munitions was pushing out some ammo. According to Howell Munitions and Freedom Munitions, they are still working to get ammo orders out for the time being.

It’s important to note that bankruptcy doesn’t mean Howell or by extension Freedom Munitions is closing their doors. If that were true, then Colt and Remington would have been gone a long time ago. This could be a restructuring or attempting to renegotiate debt with creditors. It seems to be a Chapter 11 bankruptcy according to several sources, so it’s likely restructuring. They could come out perfectly fine, or of course, they could be going under.

Freedom Munitions is a well-established company that has had some issues with reliability. From personal experience, I have guns that like their ammo and guns that hate it. My Glocks, in particular, seem to hate the American Steel loads. However, they do produce an absolute ton of ammo and do it all in the United States with a variety of components form ammunitions companies around the country.

The cause of this bankruptcy could be a wide variety of reasons, but the most likely is expansion due to demand. That demand for ammo we had in 2012 up until 2016 was massive and companies expanding to meet demand are now faced with reduced demand, but equipment, jobs, and components they need to take care of. George Kelgren of Kel-Tec is famous for under producing based on the market due to the idea of taking on debt. There seems to be some merit to this strategy, but businesses are often built on risks. Let’s hope the risk they took doesn’t end the company.

The post Is Freedom Ammunition Closing Its Doors…Probably Not appeared first on Omaha Outdoors.

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