Texas gunmaker Watchtower Firearms files for bankruptcy

HOUSTON – The Houston Chronicle reports that Texas gunmaker Watchtower Firearms filed for bankruptcy last week amid lower consumer demand for guns. Watchtower boasts a range of military, civilian, and precision firearms, suppressors, and accessories. The manufacturer is based in Frisco, Texas, with a corporate office in Spring, according to PitchBook. After acquiring another manufacturer known as F-1 Firearms in 2023, Watchtower shared its aim to focus on three primary markets: everyday consumers, domestic and foreign military, and law enforcement markets. However, its appeals to those customers have seemingly failed to be enough to steer the company clear of financial problems.

Watchtower filed for Chapter 11 bankruptcy in the Northern District of Texas on Thursday, which is a type of case often referred to as a “reorganization.” In these scenarios, a debtor can use the time from their bankruptcy filing to the confirmation of their debt repayment plan to reorganize their finances, the Internal Revenue Service says. But failing to reorganize and get a debt repayment plan approved may result in the case being converted to a liquidating Chapter 7. Watchtower bills itself as a veteran-owned manufacturer and lists leadership that formerly worked at defense company Raytheon. And though Watchtower was founded recently, in 2022, it’s still considered a notable brand; Watchtower was nominated for “most innovative brand of the year” at the most recent “Gundies” awards, a voter choice awards in the firearm industry. Its recent acquisition F-1 Firearms also had a high profile, with Donald Trump Jr. saying in 2022 that he took his son to the manufacturing facility to make his own AR-15.