Fear & Loading: Financial Strife at a Pair of Industry Firms

by
posted on March 22, 2019
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Hudson Manufacturing, which introduced the 9 mm H9 semi-auto pistol in January 2018, filed for chapter 7 bankruptcy on March 14, citing between $10 million and $50 million in liabilities and less than $50,000 in assets. If the court grants the motion, the company’s inventory, machinery and everything it owns of value would be liquidated to pay creditors.

The firm’s financial challenges became public during the late summer of 2018, when Cambridge Valley Machining filed a lawsuit alleging it failed to make complete payment for ordered parts. The response filed by Hudson Manufacturing claimed the amount paid reflects the supplied components return rate due to inadequate machining and quality-control issues in the product.

Hudson Manufacturing reserved space at the 2019 SHOT Show in Las Vegas, Nev., although the booth remained empty throughout the event. Cy and Lauren Hudson began working on the H9 concept—a striker-fired 9 mm with a 1911-style trigger—in 2013, bringing it to market five years later.

More Magazines Disappearing
On March 10, F+W Media, once a powerhouse in print publishing with a large stable of magazines covering a variety of enthusiast pursuits, “…filed for protection under Chapter 11 of the federal bankruptcy code, citing in various documents a perfect storm of industry decline, poor investments, and even mismanagement,” according to Forbes magazine. The company was founded in 1913 and grew to include a number of popular firearm and hunting periodicals on the newsstand, although its current outdoor offerings have dwindled to only Deer & Deer Hunting and Trapper & Predator Caller.

Documents filed with the court indicate the company has a $105.2 million debt and $2.5 million in cash. Its book division produces more than 100 titles a year, and its other properties include websites, on-line retail sites, subscription video services and more.

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