If you keep up with gun news, you might’ve heard a rumor that Diamondback Firearms is heading for the exit. People talk, especially when any company, big or small, is in a rollercoaster industry like firearms. So, let’s get right to the point: No, there’s no real evidence that Diamondback Firearms is shutting down or filing for bankruptcy.
But that doesn’t mean the industry is a walk in the park. Firearms manufacturers have had a rough ride lately, and it’s fair for anyone to wonder who might be next. Let’s lay out what’s happening and how Diamondback fits in.
Where Does Diamondback Stand Right Now?
As of late 2025, Diamondback Firearms is still in business. There aren’t any bankruptcy filings, no shutdown announcements, and no large-scale layoffs reported. The company continues to produce and ship pistols, rifles, and accessories. You’ll still find their guns for sale online and at dealers across the U.S.
If you dig into industry filings or news sites, you’ll spot stories about plenty of other companies in trouble. With Diamondback, though, there’s nothing official showing they’re in distress. Their social media and website are active, and distributors list their latest models.
Why All the Chatter About Firearm Companies?
There’s a reason rumors start. It’s no secret the gun industry is in the middle of a slump. According to recent sales data, the whole U.S. firearms market saw sales drop by almost 10% last year. To break it down further: rifle sales dropped over 12%, handgun sales slid about 9%, and shotgun sales fell by 7.5%.
When sales go down, companies start to struggle with cash flow, and some can’t keep up with their bills or loans. That’s when talk about layoffs, closures, or buyouts gets loud.
Who Actually Filed for Bankruptcy? Let’s Be Specific
A handful of manufacturers did hit the panic button this past year. SCCY Industries, for example, filed Chapter 11 bankruptcy in August 2025. Their assets got seized over $250,000 in unpaid taxes that’s a sign of some serious financial stress.
Then there’s Watchtower Firearms, which filed Chapter 11 back in February because of tax problems, vendor debt, and operational headaches. Central Florida Firearms is another example. It entered bankruptcy in September, with reported assets and liabilities in the $10–50 million range.
All this keeps the rumor mill going. People see one or two companies go under and start assuming the whole industry is about to topple. That’s not the case for everyone.
How Does Diamondback Compare to the Companies at Risk?
Companies like SCCY and Watchtower ran into specific trouble: primarily tax debt, vendor disputes, and cash issues made worse by shrinking sales. Some of them are smaller outfits, with less established distribution channels or brand recognition.
Diamondback Firearms, by comparison, is a regular name among the top 30 biggest manufacturers in the country. Their products especially their compact handguns and affordable AR-platform rifles show up at gun shops nationwide.
They’re big enough to weather some bumps, and, so far, they haven’t shown the kind of red flags that come before bankruptcy. You won’t find reports on gun forums or YouTube of dealers unable to get shipments or warranty requests going unanswered, which is often how trouble first surfaces.
Rumors, Speculation, and Internet Theories
Of course, if you open up gun YouTube or browse Reddit, you’ll run into wild speculation about which brands are “done for.” That’s how the internet works.
Most of the focus right now is on brands that already faced serious problems like Remington, which had to liquidate after that $73 million Sandy Hook settlement. Or Sky, which disappeared from shelves as financial issues piled up.
None of the most-watched “at risk” lists mention Diamondback Firearms. Sometimes their name pops up in clickbait headlines or as part of a general list of companies everyone’s “keeping an eye on,” but that’s about it.
Steady in the Top 30: Diamondback’s Market Position
Let’s get specific. According to sales data from 2023 and 2024, Diamondback is still in the top 30 among U.S. gun manufacturers. That’s a big group, but most of the bankruptcies we’ve seen involve much smaller, newer, or more niche companies.
Being near the top means something. It suggests the company’s got a solid distribution network, active contracts, and some level of demand. If you head to most gun stores, their DB9 pistols and AR-style rifles are usually on display not gathering dust.
They continue releasing updates and even new models. This isn’t the behavior you’d expect from a company circling the drain.
What’s Keeping Diamondback Stable (So Far)?
First, price. Diamondback’s pistols and rifles generally land in the “affordable” tier. When money gets tight for American buyers, budget-friendly guns tend to hold steady better than expensive, custom-made models.
Second, reputation. While Diamondback has had mixed reviews in the past (like most budget brands), they’re generally known for functional, entry-level firearms that work. That’s a big chunk of the U.S. market.
Lastly, they’ve kept a pretty simple product line. It sounds boring, but a focused lineup is easier to manage when sales slow down. They don’t seem to be overextending with wild new ventures, which is something that’s tripped up other brands.
Industry Headwinds: What’s Weighing Down U.S. Firearms?
Big picture, the firearm market has cooled off since a massive spike in sales between 2016 and early 2021. That rush was driven by politics, new gun owners, and pandemic-related uncertainty. Now, things are leveling out.
Legal pressures on gun makers are also increasing, with some courts allowing lawsuits against manufacturers tied to third-party misuse of firearms. The high-profile Remington liquidation was about liability, not just sales.
Debt is another issue. Companies that went on spending sprees or took out loans to expand during the peak years now face a lot more strain as sales dip.
Still, not every company is stuck in this rut some are simply staying lean and focusing on their core business.
Do Broader Trends Put Diamondback at Risk?
Naturally, the slowdown in sales and legal risks aren’t just going to bypass Diamondback. If things get worse, even bigger companies could feel the pinch. But as of now, they aren’t showing the symptoms the lawsuits, big layoffs, or vendor disputes that come before a bankruptcy.
Their ongoing product releases and steady distribution suggest a business that’s adapting, not panicking. That stability is why they’re not showing up on those speculative lists or in bankruptcy court records.
It’s a Bumpy Ride, but Diamondback’s Still There
If you’re scrolling through stories trying to find out if Diamondback Firearms is going out of business, the answer is no. They’re not filing for bankruptcy, they haven’t announced a shutdown, and their products are still making it to gun store cases across the country.
That doesn’t mean the industry isn’t tough. Companies are falling, and nobody has a crystal ball for 2026. But so far, Diamondback stands out as a solid and stable player, not one on the edge.
Should You Keep Watching for Changes?
If you’re a fan of their guns or just following the market, the best thing you can do is monitor official statements and legal filings for any new signals. There’s no telling when the next ripple will hit, but there’s a big difference between rumor and an actual change in business status.
For peace of mind, check the company’s public communications or search industry news for updated information. Places like Side Business Tips also keep tabs on small business trends and could catch big news if fortunes change.
The bottom line: There’s no real reason to panic about Diamondback Firearms. They aren’t on the list of companies in crisis at least for now. But as always in a shifting industry, staying informed is never a bad idea.
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