Three firearm distributors will be closed by year end

[mrvmax]

As an indication of the condition of the firearms industry, three wholesale distributors will be closed by year end. Ellet Brothers, Green Supply and Lee Horton. It’s a very competitive industry with small margins and in the end this is not a good thing for consumers.

[crazy2medic]

As an indication of the condition of the firearms industry, three wholesale distributors will be closed by year end. Ellet Brothers, Green Supply and Lee Horton. It’s a very competitive industry with small margins and in the end this is not a good thing for consumers.

My son worked for Ellet brothers and their office for Texas is closed! He was the last Sales Rep, and they told him to clear the office of everything and lock the doors, so for the past several weeks he's been job hunting!

[Scott B.]

I disagree. Unhealthy businesses fail while others grow. It sucks for their employees, but the consumer won't notice a thing (unless you collect S&W revolvers and that's a smaller and smaller group).

[mrvmax]

I disagree. Unhealthy businesses fail while others grow. It sucks for their employees, but the consumer won't notice a thing (unless you collect S&W revolvers and that's a smaller and smaller group).

Acusport closed also, I forgot that one. Les Horton May have offered a lot of one offs but the others had a wide variety of sporting goods and I’m not certain we can assume all four were unhealthy businesses. If you have insight into each of their financials please share with us. That could be the case but I don’t know.

[flechero]

8 years of hyper saturation has hurt the current balance of the industry. Many people bought a lifetime's worth of guns and ammo before the last election...

The current climate of gun/ammo sales is competitive, which is probably good for the market long term but painful for those readjusting after the "easy years" where anything they could get, sold immediately, at a premium.

[Scott B.]

I disagree. Unhealthy businesses fail while others grow. It sucks for their employees, but the consumer won't notice a thing (unless you collect S&W revolvers and that's a smaller and smaller group).

Acusport closed also, I forgot that one. Les Horton May have offered a lot of one offs but the others had a wide variety of sporting goods and I’m not certain we can assume all four were unhealthy businesses. If you have insight into each of their financials please share with us. That could be the case but I don’t know.

We don't have to assume anything, they closed. They didn't keep up with the market. Didn't adapt. Had a bad business plan. Whatever. The fundamental reasons don't really matter. Happens daily regardless of the industry. Down business cycles sort the wheat from the chaff, and we're not even into a slump - yet. Check the restaurant or bar biz, those are brutal closure rates.

I talk to my distributors regularly, some weekly. My primary distributors are in a growth period. Others are hungry. Lately I've been hit up a bunch of new ones or old ones trying to expand.

[crazy2medic]

What I was told was Ellet bros laid in a bunch of inventory just prior to the 2016 election, believing that the pantsuit was going to be the President and there would be a rush on guns, after Trump won, Ellet bros could not "unload" the guns fast enough to maintain solvency and filed bankruptcy!

[Scott B.]

Think that was the story they tried to peddle but the bankruptcy proceedings revealed they took large loans and put funds in some sort of investment enterprise that was not Ellett Brothers.

[crazy2medic]

That's the story they told my son, but Corporations just like democrats LIE!

[mrvmax]

Yes, it most likely relates to business practices in one way or another but the market used to be able to sustain these distributors even with the way they ran and now it no longer can. I don’t have access to the inner workings but did hear about rumors of some bad practices but I don’t think that’s the case for all of them. Things have changed a lot and I’m not so sure things like liability (insurance for one) or lack of cooperation with firearms related businesses haven’t had some effect on the industry. It could be blamed on lack of business prowess but I don’t think that accounts for all of it.

[Charles L. Cotton]

We are definitely in a downturn for the firearms industry. This is common when we have a gun-friendly president just as firearms sales boom when we have an anti-gun President. Buying was at record levels during the Obama years, so a lot of demand was satisfied. The demand for AR-15s is up because of the Democrat chatter, but it is not as high as it has been in prior years.

Chas.

[DynamicDan]

I just bought a lower, and working on purchasing an upper

[Grayling813]

We should all help by going out and buying an(other) AR15!

[Ameer]

We should all help by going out and buying an(other) AR15!

Maybe when prices come down again.

[Oldgringo]

Superior Outfitters in Tyler seem to be doing quite well. Check 'em out?