Sharps Rifle Company has filed for Chapter 11 bankruptcy. Bankruptcy documents where filed with the Wyoming District U.S. Bankruptcy court on December 31st of 2019. The bankruptcy filings by Sharps shows that the company had been in financial distress for sometime and unable to pay back debts and loans.
Sharps Rifle Company has filed for Chapter 11 bankruptcy. Bankruptcy documents where filed with the Wyoming District U.S. Bankruptcy court on December 31st of 2019. The bankruptcy filings by Sharps shows that the company had been in financial distress for sometime and unable to pay back debts and loans. Back in 2017 the company was bought for just over $1 million in gross revenue. In 2019, Sharps was only able to bring in $578,000 in revenue.
Bankruptcy documents show that Sharps owed a significant amount of money to nine different creditors. To the tune of $4 million dollars. The debts from the creditors where as small as $2,000 to as large as $ 2 million dollars. Which went to services such as equipment, advertising, and investment capital.
One of the larger portions of Sharps debts comes from fraud and IP violations by the former owner of the company. Sharps owes $835,986 for those fraud and IP violations alone. Sharps will be able to continue business as usual while undergoing Chapter 11 bankruptcy proceedings.
History Behind Sharps Rifle Company
Sharps Rifle Company original started as A-Square back in 2008. A-Square built a new facility in Glenrock, Wyoming. The Wyoming Business Council understanding was that the investment of the new facility would create economic stability for the Glenrock community. Fast forward four years to 2012, A-Square is now defunct and bought out and renamed Sharps by its new owners.
Even with a new name and new owners Sharps wasn’t able to correct the course of the company. The company continued to struggle fulfilling orders to customers. One hundred and forty customers filed complaints against Sharps, according to attorney’s general investigation into the matter. The refunds billed to Sharps totaled $143,000.
In 2013, current owner of Sharps Rifle Company Jay Johnston absorbed the company into his own Boardsword Group. Boardsword has taken ownership of other rifle manufacturers in its past. It currently lists Glenrock as its headquarters. Boardsword Group eventually failed and was dissolved back in 2017. Sharps currently only has one employee for the company.
It seems like Shraps Rifle Company was mismanaged from its inception. Either the new ownership didn’t understand the challenges facing rebuilding the company or poorly plan business restructure. We will never know what could have been for Sharps under better ownership, business strategy, and oversight.
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