Gunwerks Sued by Wells Fargo to Collect on $2.8 Million Loan
Wyoming-based Gunwerks LLC is a highly visible producer of high-grade rifles, modern optics, and rifle accessories. Gunwerks had its own television show and operated upscale long-range shooting clinics and guided hunts. Now the company may be in tough financial straights.
K2radio.com reports that: “Wells Fargo Bank has sued the Cody-based custom-rifle maker Gunwerks, LLC, for $2.8 million for unpaid loans and wants the company’s equipment, according to federal court records filed Wednesday. Gunwerks … also owes $1 million to creditors and and for unpaid sales taxes, according to the complaint by the bank and Wells Fargo Equipment Finance, Inc., through its attorneys[.]”
For full details, we recommend you read the full 5/20/2020 news story from Wyoming Radio Station KTWO (K2) in Casper, Wyoming. That report provides extensive details of the legal claims by Wells Fargo. The lawsuit was filed in U.S. District Court for the District of Wyoming. View Court Documents HERE.
Wells Fargo’s complaint alleges that Gunwerks owes the bank roughly $2.8 Million. Wells Fargo further alleges that a Gunwerks financial report reveals that Gunwerks owes approximately $622,000 in creditors’ bills. The complaint also alleges Gunwerks owes $365,000 in unpaid state sales taxes.
Wells Fargo’s Motion for a Receiver states the loan amount owed is $2,783,757.82, with interest accumulating at more than $20,000 a month.
Wells Fargo is seeking to recover and secure inventory and other Gunwerks property used as collateral for the bank’s loans. The complaint filed in Federal Court alleges: “These circumstances require the immediate appointment of a receiver to recover, salvage, and retain the value of the Collateral.”
Wells Fargo has alleged that Gunwerks has already sold part of the collateral inventory and deposited the proceeds in different banks: “The Borrower has taken control of Wells Fargo’s collateral, refuses to disclose the names and addresses of account obligors for accounts that constitute collateral for Wells Fargo and has removed and refused to remit proceeds of Wells Fargo’s collateral to prevent such collateral from being applied to the Borrower’s loans[.]”
Gunwerks has not made a public statement about the situation: “What all this means for the company’s future and its employees is unknown. A Gunwerks’ spokesman did not return calls seeking comment.” (Source KTWO Report.)
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Tags: Bankruptcy, Cody Wyoming, Gunwerks, Gunwerks TV, Wells Fargo
I have had my bad experiance with gunwurthless. After the purchase of a $7k rifle. It would not shoot a group with brass that had been fire formed. I discovered a protruding ring in the case neck. This was offsetting the round once it was fired in the gun. In short. They offered to repair the chamber. I went ahead and paid them 700 for a new barrel. The gun was returned from gunwurthless. But now had a barrel with severe erosion from lots of firings. Add this the barrel looked as if over 100 rounds fired since last cleaned.
You should do some fact checking before reposting false news. That was a very one sided report, and sure muddies the name of another arms manufacturer in these hard times. With one phone call you can find out what’s going on, and its nothing like what you reposted.
5/23/20
I have disassembled many of their rifles,that they are having difficulties is no surprise to me.