Chapin, South Carolina-based United Sporting Companies, an 85-year-old distributor of firearms and outdoor sports equipment to smaller retailers, has filed for Chapter 11 bankruptcy in Delaware and has notified the South Carolina Department of Employment and Workforce that it will be permanently closing its 250,000 square-foot Ellett Brothers facility located in Chapin, South Carolina, laying off more than 170 workers by August, 2019. While the company will continue to exist, it will be significantly restructured into a smaller company. However, since the company has admitted
It appears that the proximate cause of the company’s collapse can be attributed to financial engineering, mismanagement, and a bloated gun inventory according to the allegation contained in a lawsuit where lender Prospect Capital is seeking more than $160 million which they appear to allege was diverted to interested parties and not used for the benefit of an ongoing business.
Other that Ellett, the company’s holding company, SportCo Holdings, also controls United Sporting Companies, Inc., and Ellett-owned companies including Simmons Gun Specialties, Evans Sports, Inc., Jerry’s Sports, Inc., Bonitz Brothers, Quality Boxes, and Outdoor Sports Headquarters, Inc. All are located in Chapin, South Carolina. Unfortunately, in a business failure of this size, the ripple effect can severely impact its creditors, some of whom might be struggling with their own marginal finances.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?