Ever since the demand for guns has dropped after a peak during the pandemic, companies have been squeezed for profits. But, unfortunately, some won't make it through the mud.
Popular gun brand Umbrella Armory has filed for Chapter 7 bankruptcy, according to Yahoo!finance. The manufacturer was known for creating custom guns in the airsoft community. The company reported estimated assets between $0 and $100,000, with liabilities between $100,000 and $1 million.
Part of the reason for the bankruptcy was due to a slowdown in gun purchasing across all sectors. Sales of firearms declined 4.1% in 2025, going from 15.2 million in 2024 to 14.6 million in 2025. This slowdown was expected, but companies have been criticised by experts for not reacting fast enough.
Kaleb Seymour, a data analyst for Gearfire, a software company specialising in solutions for firearms retailers, said, "The third quarter [of 2025] was a wake-up call. The question now is who will adjust before year-end and who will get caught waiting."
And, it seems that Umbrella Armory was one of those who got caught waiting. The outlet has said that their liabilities include loans from the US Small Business Administration, as well as $45,000 in credit card debt owed to the Bank of America.
Umbrella Armory continues to sell "small parts" on their website. But, it looks like their days of selling custom airsoft guns are gone.
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Despite This, the Airsoft Gun Market Is Looking Really Good
Despite the liquidation of some airsoft gun companies like Umbrella Armory, the global market is looking set to soar. According to Yahoo!finance, the global airsoft gun market is projected to hit $3.6 billion by 2030. This is almost double their current market value.
The outlet says that there a few reasons behind the global projection being so high. One is that millennials are getting interested in extreme sports to relieve stress. As well as this, the increase in availability of places like target shooting centres has lead to an increase in demand for the guns.
However, critics have cast doubt on this growth projection. They warn that airsoft guns can potentially cause harm, and that there needs to be caution.
