Author Topic: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy  (Read 356 times)

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Offline Shipwreck

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Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy



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In a surprising turn of events, OutdoorHub has just learned that Idaho based Freedom Munitions appears to be traveling down a similar path as other brands, such as Remington, have this year. Bankruptcy filings have been submitted on June 8th, 2018 for Howell Munitions & Technology and multiple companies under the HMT umbrella. The firearm industry has had a rocky road over the past two years, with the daily threats of gun control under President Obama having slowed under the Trump Presidency and a Republican held house.


https://www.outdoorhub.com/news/2018/06/11/freedom-munitions-parent-company-file-for-chapter-11-bankruptcy/

Offline Gilgondorin

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #1 on: June 12, 2018, 11:41:02 AM »
If they went bust so quickly after an 8 year boom like that, they probably deserved to go. Nothing lasts forever, and it should have been incredibly obvious that there would be a huge slump in sales once Obunghole got kicked out.

That's gotta be a candidate for redefining the term "financial mismanagement".

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #2 on: June 12, 2018, 01:30:44 PM »
.
visited their houston store, once, but didn't buy - and haven't bought from them - qui sera sera
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Offline TXAZ

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #3 on: June 12, 2018, 01:34:24 PM »
Hope Dom didn't put any investment into it...

Offline Domineaux

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #4 on: June 12, 2018, 11:57:57 PM »
Hope Dom didn't put any investment into it...

I've still got a few thousand rounds that will likely hold me over through their reorganization.
No idea about how the company was managed, but I've bought and shot over 20k rounds and been very satisfied.
I have no doubt they will be back.
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Offline TXAZ

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #5 on: June 13, 2018, 08:41:37 AM »
Hope Dom didn't put any investment into it...

I've still got a few thousand rounds that will likely hold me over through their reorganization.
No idea about how the company was managed, but I've bought and shot over 20k rounds and been very satisfied.
I have no doubt they will be back.
They should have hired you as Chief Tester and Cheerleader!

Offline Domineaux

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #6 on: June 13, 2018, 11:36:02 PM »
Hope Dom didn't put any investment into it...

I've still got a few thousand rounds that will likely hold me over through their reorganization.
No idea about how the company was managed, but I've bought and shot over 20k rounds and been very satisfied.
I have no doubt they will be back.
They should have hired you as Chief Tester and Cheerleader!

I agree, would just take all the free ammo I want. Helluva deal if you ask me. ;)
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Offline TXAZ

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #7 on: June 14, 2018, 09:38:00 AM »

They should have hired you as Chief Tester and Cheerleader!

I agree, would just take all the free ammo I want. Helluva deal if you ask me. ;)

Let me get right to work on that for you Sir!

Offline DCD327

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #8 on: June 14, 2018, 09:43:05 AM »
If a 6 month slump in ammo hoarding caused them to go bankrupt,,

they were NOT doing something right.  :thinker:
Or maybe that was the exact plan to begin with.

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Offline TXAZ

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #9 on: June 14, 2018, 10:07:27 AM »
If a 6 month slump in ammo hoarding caused them to go bankrupt,,

they were NOT doing something right.  :thinker:
Or maybe that was the exact plan to begin with.

I'd bet they got on the 'buy ammo because of Obama' train, spent $$$$ on capital equipment, did well for several years, then watched industry-wide sales go down the hill, just like everyone else....
Except they may have had higher and newer capital and startup debt that older mfg's didn't have.
Just a guess.

Offline Shield45

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #10 on: June 14, 2018, 10:30:31 AM »
Most bankruptcy filings are a result of poor fiscal management I doubt this one was much different.




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Offline Psyc

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #11 on: June 14, 2018, 10:37:31 PM »
Most bankruptcy filings are a result of poor fiscal management I doubt this one was much different.

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I hate to see small business go out of business, but I expect you are correct.

Offline K-Texas

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Re: Freedom Munitions & Parent Company File for Chapter 11 Bankruptcy
« Reply #12 on: June 15, 2018, 10:26:07 PM »
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Bankruptcy filings have been submitted on June 8th, 2018 for Howell Munitions & Technology and multiple companies under the HMT umbrella.

I don't have an MBA, but it looks like an interesting strategy. Parent Co. files Ch 11 and the separate companies under the umbrella file as well. The only company that I have had direct experience with is X-Treme. They are one of a very few brands of plated bullets I've ordered and handloaded. It's almost as if HMT has a weak link and wants to see which of the subsidiaries can't make it back from reorganization.

2 problems that might factor in is that with the popularity of Poly-Coated bullets, it's hurting sales of plated bullets. Then there's the question of Freedom Munitions making reman ammo. Some years ago on another ammo/reloading forum, a fella put up a pic and asked if what he was seeing with his reman ammo was normal. They weren't even close and had great differences in OACL within a single 50 round box.

Now, I've never been for anyone buying reman ammo, and particularly not the gunshow variety. You would have to be a fairly experienced handloader to determine their safety from the components used: therein lies the problem, unless it's someone you trust making handloads for you, you're never likely to find out what's really inside.

Since I started posting in ammo/reloading forums about 15 years ago, I've pushed the same philosophy. Of course, bullets were a great deal cheaper then, but comparative pricing still holds up. Why buy FMJ while JHPs are usually around the same price. Many don't understand that a hollow-point has an accuracy advantage over FMJ, so FMJ is what they buy and handload. Things may be changing since Hornady introduced the HAP bullets. Same as the XTPs but without the skives on the nose that cut the jacket into 6 different petals upon impact and penetration. They're made specifically because of their hollow cavity and not designed to expand.

Then you have another scenario with plated. What can a plated bullet do, or even an FMJ, that a coated bullet won't do? I loaded a lot of hard cast bullets before the widespread availability of poly-coated, and in every load that didn't get a JHP. In other words, I can get by rather easily with JHPs and coated. Plus, if you slug your bore to find it's groove diameter, you'll often get better accuracy with hard cast or poly-coated bullets that are .001" larger than groove diameter. I kind of expected a slow-down in sales for plated bullets. Moreover, I've asked several companies already when will we see hollow-point poly-coated bullets from them. I believe it's just a matter of time.

For those who have been in the game as long as I have, you might remember the original Nyclad Hollow-point made and introduced by S&W while they were still in the ammo biz. When they got out of the ammo biz, Federal acquired the rights to manufacture them. As far as their history in actual gunfights they've done pretty well. The main difference being that the lead cores were covered with Nylon where today's poly-coated vary in the polymer compound that each companiy chooses to use.  :icon_wink:
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