Politics plays a significant role in the success or failure of firearms sales.
When a Democratic president is about to occupy the White House or is President, gun sales have increased significantly. But when a Republican is President, gun enthusiasts are not so worried about their Second Amendment rights and don’t feel a need to stock up on firearms.
This has been the case with the presidencies of President Donald Trump and President Joe Biden.
And it hasn’t been good news for gun dealer Sugarbush Armory.
Gun sales rose when Biden was president
When Trump was president in 2019, the industry recorded 13.2 million background checks for sales. As Biden was preparing to become president in 2020, gun sales shot through the roof and set a record with over 21 million Americans buying firearms, according to the National Shooting Sports Foundation.
With Trump back in the White House and consumers also worried about the economy, gun sales have been dropping again, with sales falling below an industry standard of 1 million background checks for sales per month in 2025, according to The Reload.com.
The decline in sales has affected gun dealers, forcing business closings and bankruptcy filings.
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Sugarbush Armory files for bankruptcy
Troubled firearms dealer Sugarbush Armory LLC filed for Chapter 11 bankruptcy protection on March 24, after facing declining sales and multiple lawsuits.
The Attica, N.Y.-based gun retailer filed its petition in the U.S. Bankruptcy Court for the Western District of New York in Buffalo, listing $1 million to $10 million in assets and liabilities, according to Bankruptcy Observer.
Sugarbush Armory’s filing comes after several months of declining firearms sales across the industry that have affected gun dealers nationwide.
The debtor, however, did not specifically state a reason for filing for bankruptcy.
Firearms sales declined in 2025
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.
Industry 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, according to 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.
Silencer sales increase
National Shooting Sports Foundation, however, reported that background checks for certain items, such as silencers, in January rose 121.2% compared to January 2025 to 206,871.
Sugarbush Armory also endured the costs of some lawsuits filed against it in recent years.
The debtor resolved two lawsuits in 2024: an alleged breach-of-contract lawsuit filed by Cloudfund LLC, which was settled on March 7, 2024; and a judgment was entered in a contract lawsuit filed by Ittia Ventures on Dec. 19, 2023, according to Unicourt.
Sugarbush Armory sells firearms, ammunition, optics, accessories, gear, and supplies. It also offers gunsmith services and operates an indoor range.
Gun makers file bankruptcy
Other firearms companies that have filed for Chapter 11 bankruptcy over the last year include struggling 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.
Daytona Beach, Fla., firearms manufacturer SCCY Industries LLC, whose assets were seized by the Volusia County Tax Office of Florida at its Daytona factory on March 11, 2025, for non-payment of tax debts of almost $250,000, filed its petition in the U.S. Bankruptcy Court for the Middle District of Florida on Aug. 1, 2025.
Related: 31-year-old Subway rival franchisee files Chapter 11 bankruptcy
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