Home Forums Hunting & Shooting Hunter's Campfire Wells Fargo sues Gunwerks

Too bad, but it happens. GW is broke and WF want's what they can recoup. It sounds like WF isn't the only one standing in line.

I’m glad I quit using their products when I did!!! This is very comical knowing what kind of guys run it!

Getting sued by WF is one thing - withholding taxes from the government will put them out of business.

Davidson bros. are a couple of clowns. As to the "two sides to every story", what story can you possible have for not paying your sales taxes? They are history, and the bros. are in deep doodoo I'd guess. Personal guaranties very likely on everything if dealing with Wells Fargo.

Wow nothin like a couple ‘tards to fail to recognize a sustainable scam when they see one.

I have a Dr client who paid HUGE $ for one of their “rifle systems” and is as happy as a clam.

Yeah, kinda reminds me of the gal that was running She Safari. That was a flash in the pan. One day she's got her a$$ and tits floating across the screen on every outdoor show that'll have, next thing ya know, she's gone.

The Davidson bros seem to have taken the same mis-direction if the story that's written is true.

I’m not familiar with this rumor, I worked for WWG for a decade. What’s the supposed story?

If you want to see the actual complaint (less exhibits), you can click on this link and go to post #64 for a pdf link. It appears on the surface that GW is indeed in serious trouble. It will be interesting to see if Wells confiscates it's collateral (equipment) and sells it off, or tries to operate the business. If they sell it off they will probably sue Davidson and Co for the balance due, and since Davidson has personal guaranties on the loans.............

https://www.snipershide.com/shootin...gunwerks-in-federal-court.7006271/page-2

Beave, I'm with you on WF not being an innocent bystander. I can quote you chapter and verse on some of their doings here in FL circa 2008.

Wells Fargo may not be the only one in line but they will be first, I am quite certain they are a secured creditor.

Some vendors will eventually find out the worth of a personal guarantee.

Not a long range hunter, have no clue was caused them to get to this point, but I hate to see us lose a gun company and a lot of vendors will be hurt if the bankruptcy moves forward.

The one thing I learned a long time ago is "Do not screw with the Tax Man." That is a no-win situation... As mentioned multiple times in the SH posts, I think they are in deep yogurt...

You may be right, but I bet the gov't will be absolutely first in line, since GW collected sales tax and did something with it other than forward it on to big brother. They don;t like that crap. WF will be next in line, and everyone else after that. Any other creditors will get pennies on the $$$, if anything at all after the first two lienholders get through with GW. All Davidson has to do is file personal bankruptcy to get out of the personal guaranty situation. If they file bankruptcy under thieir business, then personal guaranties still apply.

Mr. Raider,

I agree about the taxes.

It is surprising they went that long without paying sales tax. It would be interesting to see if they were collecting the tax and not paying it. Sales tax can be a pain in the ass because of different exemptions, shipping things out of state, manufacturing versus retail. I wonder if they got dinged in an audit and did not pay it or if they just quit paying because of lack of cash.

Hope all is well for you, tough times for many in the Permian.

Now doubt...They’ve been sued by the Federal government and Class Action law suits. They are still paying out hundreds of millions in restitution, fines and penalties.

Shylock operators on the Board of Directors. Still printing money even after being financially nailed to the cross several times.

😎

If you have WF for a mortgage, call and check.

They've been putting people in forbearance even if they didnt ask and are OTIF on payments.

..............Very interesting. Based on the article, looks like Aaron Davidson is in heap big duu-duu.

I have no other info on this, but on youtube there are two videos entitled "MOA" and MOA part 2 which I first saw quite awhile ago. These two videos compare custom rifles from Gun Werks vs production rifles from Browning in terms of manufacture, accuracy, philosophies, costs vs accuracy benefits and on down the line which I found interesting.

No doubt Gun Werks custom rifles are extremely well made, outstanding build quality in manufacture and the whole shaa-bang. Perhaps too good. If you are going to compete in the marketplace of manufacturing rifles that a higher percentage of shooters and hunters cannot either afford or if affordable choose not to pay such high prices, then you vastly limit your retail market customer base.....Weatherby produces MK5s but they also make Vanguards. Other rifle makers like Weatherby make their more expensive rifles while offering lesser expensive alternatives such as Browning.

I am guessing, but it looks like Gun Werks got way over-incumbered with equipment costs way too fast. while at the same time not catering to a wider market customer base by not offering lesser expensive alternatives and therefore sales went south from a medium to a large degree. Getting over in-cumbered in debt while having a philosophy of only making the best can lead to failure if not managed well......Guessing the a BK might be on the way for Gun Werks.

Thanks Mike. We will make it out here but it'll take a little time, just like the last few downturns we've been through. Things will settle out eventually. I used to be in the fuel business for about 22 years until I sold my interest a couple of years ago. When purchasing fuel at the refinery, you can either buy it tax free or taxes paid. If you buy tax free you have to file tax reports every month and pay up all at once for state and fed taxes. We always elected to pay our taxes at the rack rather than file reports. I guess we always wanted to know whether we were broke or not!

There was another post on that snipershide thread that a guy had some history on GW's reporting. They had been delinquent like 5 times since 2009, so paying taxes wasn't something they took very seriously I guess. That's a stupid way to conduct business that's for sure.

Depending on how WF is collateralized on their loans and if there are significant personal assets of the owners who signed personal gurantees they will probably come out ok on a 1st lien position as the primary creditor. Having worked in special credit and collections for various large regional banks collections are not always as straight forward as what a person would like and can be quite painful all the way around. Typically the banks that are taking equipment as collateral especially specialty equipment like in the gun business that equipment is appraised and then discounted to get the collateral value typically the value is not 1 for 1.

The downside to all of this of course is that in a liquidation situation banks will rarely receive even the discounted value because some specialty equipment will be lucky to get fifty cents on the dollar.

They should be sued, if for no other reason than the idiotic purposeful misspelling of the word "works."

Is one of these guys the redhead on some of their hunting shows?