Firearms distributor files for bankruptcy, says gun sales dropped when Trump became p
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    Senior Member NGF Addict! Yosemite Sam's Avatar
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    Default Firearms distributor files for bankruptcy, says gun sales dropped when Trump became p

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    United Sports Cos (USC) said it planned to liquidate its holdings citing excessive debt and inventory. The company, which served 20,000 in the U.S., also cited “significant disruptions” in other retailers, such as Bass Pro Shop buying Cabela in 2017, [Only registered and activated users can see links. ] reported.
    The company banked on Hillary Clinton winning the election and boosted its inventory before the race, CEO Bradley Johnson said in a court filing with the U.S. bankruptcy court in Wilmington, Del. Sales of firearms slowed dramatically after the election of Trump as president in 2016 allayed fears of a Democratic crackdown on gun owners, The Associated Press reported in March 2018.

    Democrats sure can sell guns.
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    Sounds like he bet the farm on Black and it came up Red; I have no sympathy for poor business decisions like that.
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    Ancient Gaseous Emanation Popeye's Avatar
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    I'm a poor businessman. Its Trump's fault.
    The difference between a Socialist and a Communist is that the Socialist doesn't have all the guns yet.

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    Hmm wonder if i could get a deal on 9mm 1911 from them? Probably not since im not an FFL.
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    A Much More Complete Accounting

    Jonathan Stempel
    6/11/2019


    (Reuters) - United Sporting Cos, a large firearms distributor whose roots date to the Great Depression, filed for bankruptcy protection on Monday and said it plans to liquidate, hurt by falling sales after President Donald Trump was elected and as Dick’s Sporting Goods Inc began moving away from firearms.

    The company, whose units including Ellett Brothers serve 20,000 retailers in all 50 states, said other reasons for its Chapter 11 filing were too much debt and discounting caused by excess inventory. It also cited “significant” disruptions in outdoor retailing such as Bass Pro Shops’ 2017 purchase of Cabela’s and Gander Mountain’s bankruptcy.

    It said hurricanes in the southeast United States, which generates a large portion of the Chapin, South Carolina-based company’s sales, also reduced demand. USC carries such brands as Glock, Remington, Ruger and Smith & Wesson.

    The firearms industry has faced pressure on sales after Trump's 2016 election eased gun control fears, even as a spate of U.S. mass shootings has prompted calls for more curbs on gun ownership (For a link to the report, click [Only registered and activated users can see links. ]).

    In a court filing, Chief Executive Officer Bradley Johnson said USC boosted inventory before the 2016 White House race, expecting the higher sales that historically follow a Democrat’s election.

    But he said the Republican Trump’s unexpected win over Democrat Hillary Clinton was a factor in net sales falling to $557 million in 2018 from an average $885.3 million from 2012 to 2016, with an accompanying glut of inventory.

    Dick’s, meanwhile, decided after 17 people died at the Feb. 2018 Parkland, Florida school shooting to stop selling guns to people under 21, a decision also made by Walmart Inc, and to remove assault-style rifles from its stores. In March, Dick’s decided to end firearms sales at 125 stores.

    Founded in 1933 as Ellett Brothers, USC said it operates five distribution centers and is majority-owned by New York-based private equity firm Wellspring Capital Management.

    The company, which also sells outdoor equipment, was the “largest distributor of firearms in the U.S.” a few years ago, according to Bloomberg. However, Wellspring Capital Management, the company’s largest equity owner, “cashed out” more than $183 million “through dividend recapitalization deals in 2012 and 2013,” [Only registered and activated users can see links. ] reported.

    USC blamed mismanagement at Wellspring for its decline. The company said Wellspring “appointed fiduciaries who grossly mismanaged the business and depleted all reserves necessary to weather the storms and the headwinds the business would face,” Bloomberg reported.

    In its petition filed with the U.S. bankruptcy court in Wilmington, Delaware, USC said it had between $100 million and $500 million of liabilities. It plans to keep operating during the wind-down.

    The case is In re SportCo Holdings Inc, U.S. Bankruptcy Court, District of Delaware, No. 19-11299.




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    The difference between a Socialist and a Communist is that the Socialist doesn't have all the guns yet.

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    Ancient Gaseous Emanation Popeye's Avatar
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    I have bought from Ellett Brothers in the past. Their offerings were somewhat limited and their prices, not spectacular.
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    The difference between a Socialist and a Communist is that the Socialist doesn't have all the guns yet.

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    Davidsons was one of the distributors our new LGS checked for me. Then she found a better deal from one who has the 1911's on special. But out of stock. They have a reserve price when in stock though. I forget who she said it was.
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    Quote Originally Posted by Popeye View Post
    A Much More Complete Accounting
    - President Donald Trump was elected
    - Dick’s Sporting Goods Inc began moving away from firearms.
    - too much debt
    - excess inventory
    - Bass Pro Shops’ 2017 purchase of Cabela’s
    - Gander Mountain’s bankruptcy.
    - hurricanes
    - Walmart Inc
    - mismanagement at Wellspring
    Great article.

    That's a lot of "reasons," for going out of business.
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    If that's the company that owns Ellett Bros. i think they own 6-7 other large distributors in the country.
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    After 07.01.19, when I-1639 takes full effect, we will see more and more of those ignorant WA FFLs going out of business...
    Last edited by surevaliance; 06-12-2019 at 08:00 AM.
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