Gunwerks Sued By Creditors

[JimT]

Interesting tidbit in the court filing:


“Borrower's failure to timely give Wells Fargo notice of an action against the Borrower pending in San Diego, California relating to a patent in which Wells Fargo holds a security interest.”

I wonder what patent that might be?? Patent disputes can get expensive.

 

[Nightraider]

OFFICIAL STATEMENT FROM GUNWERKS CEO REGARDING WELLS FARGO LITIGATION

Cody, WY – May 22, 2020

The reports of Gunwerks’ demise are completely false. In fact, we’re crushing it! So far, 2020 has set records for sales performance and profitability, and it only gets better from here!

This week’s report of Wells Fargo filing a lawsuit has gotten a lot of attention. The bottom line is, the litigation has been settled, the entirety of our Wells Fargo operating loan has been paid off, and it is business as usual for Gunwerks.

The Wells Fargo narrative of Gunwerks’ financial distress was untrue. The dispute was never about Gunwerks’ financial condition or late payments, but about a difference of opinion on asset valuation. Within days of filing the suit, it has been settled and the case will be dismissed immediately.
Most of the stories circulating around the social media landscape are just wrong! Here are two good examples: In Wells Fargo’s narrative complaint filed in federal district court, they assert that Gunwerks was delinquent on sales tax payments. This is not true now and has never been true (Check here for a list of current delinquents in WY). They also allege that Gunwerks is late paying vendors. Again, this is untrue. We pride ourselves in dealing fairly with our vendors.

Unfortunately, despite our numerous good faith attempts to resolve the issues with Wells Fargo, the bank chose to file a lawsuit, which has now been settled. Fortunately, we had the resources to pay off the credit line within two business days of Wells Fargo filing suit. Our customers have really supported us this year with record sales. We’re on track to have our best performing year on record.

 

[JimT]

Here is the link to the actual court filing.

https://www.courtlistener.com/docke...rgo-bank-national-association-v-gunwerks-llc/

Lots of statements by the CEO don’t add up once you read and UNDERSTAND the charges Wells Fargo makes. FYI, if Wells Fargo lied in that filing that is a criminal matter. I would assume Gunwerks would sue them for defamation or something similar. I’ll not hold my breath.

 

[Forum Boss]

Update 5/22/2020: Gunwerks has issued an official statement saying that the lawsuit is settled and Wells Fargo has been paid off:

http://bulletin.accurateshooter.com...-has-settled-lawsuit-with-lender-wells-fargo/

The text of the statement was posted above. Here is the page on the Gunwerks website:

https://www.gunwerks.com/blog/press...erks-ceo-regarding-wells-fargo-litigation-225

We looked at Gunwerks Facebook page, but found nothing further.

https://www.facebook.com/gunwerks/

 

[JimT]

Additionally:
https://www.internationalsportsman....got-wells-fargo-gunwerks-lawsuit-story-wrong/

His reference to not being delinquent in sales tax remissions and then referencing a link (doesn’t work for me) to Wyoming delinquents either shows he has no idea who he owes sales taxes to or is a subterfuge. That is, I would assume most of their sales take place with people outside of Wyoming and therefore sales taxes are owed to the states of the buyers residence. A lot easier to be out of compliance that way.

 

[johnfred1965]

They have been negotiating for 7 months, but it only took 2 days to settle things once the lawsuit came up. Funny how things work.

 

[Dusty Stevens]

Its hard to imagine a $2mil bill or anything being floated around associated with a gun company period- assets, profits, revenue, taxes, etc.

 

[PWS]

Its hard to imagine a $2mil bill or anything being floated around associated with a gun company period- assets, profits, revenue, taxes, etc.

It's hard to imagine spending five figures on a "thousand yards, out of the box" rifle too!

 

[LaMan]

I'm no friend of Welles Fargo and know only what I've read about this online. I will say that as a former loan officer for a large bank the claims made in the banks law suit sound so typical of a failing company, hiding or selling assets, moving cash etc., I've seen it dozens of times. However I've also seen many times that when legal actions are begun suddenly the customer becomes much more open to working with the bank to maybe get things back on track.
I will say that also that many times lenders bear some of the blame by pouring money into new ventures based on overly optimistic projections by enthusiatic entrepreneurs.

 

[std7mag]

As on other forums i've posted on, my question would be WHY was the story printed in the first place?!

Ie to what end?
Why put something like that out there and open yourself to the impending lawsuit?

I've seen quotes of "fake news" by Gunwerks on other forums.

Somethings not right in the woodpile!

 

[Alex Wheeler]

At one time I felt the same way as many of you. I looked at what Gunwerks offered and what they charged and thought it was over priced. Since I have shifted into building rifles full time as 100% of my income, I now have first hand experience that has changed my mind. Almost every business out there has high margins in mark up. The every day stuff we buy is usually marked up over 100% by the time we buy it. Shop labor is over $100 an hour in most parts of the country. I think Gunwerks is how custom rifle building looks when normal business practices are applied to the custom rifle world. What your average smith is charging, provides him a living wage, not a profit to grow a company. Custom rifles are expensive, but if you put them into perspective compared to any custom US made precision products, its one of the best cost/value things left in my opinion. The reason is because the people in this business are passionate about it and profit is not the goal.

 

[orkan]

At one time I felt the same way as many of you. I looked at what Gunwerks offered and what they charged and thought it was over priced. Since I have shifted into building rifles full time as 100% of my income, I now have first hand experience that has changed my mind. Almost every business out there has high margins in mark up. The every day stuff we buy is usually marked up over 100% by the time we buy it. Shop labor is over $100 an hour in most parts of the country. I think Gunwerks is how custom rifle building looks when normal business practices are applied to the custom rifle world. What your average smith is charging, provides him a living wage, not a profit to grow a company. Custom rifles are expensive, but if you put them into perspective compared to any custom US made precision products, its one of the best cost/value things left in my opinion. The reason is because the people in this business are passionate about it and profit is not the goal.

People love to complain about cost. They love to talk about how expensive things are "not needed." Anything they buy, they want to squeeze whoever is selling it. Anything they sell, they want top dollar. They all want the best experience, for the lowest cost, and get all pissed off at the concept that it doesn't work that way... ever.

 

[Knotwild]

Custom rifles are expensive, but if you put them into perspective compared to any custom US made precision products, its one of the best cost/value things left in my opinion. The reason is because the people in this business are passionate about it and profit is not the goal.

Absolutely 100% correct.

 

[Sniper338]

Perhaps they should have considered making their loan payments...

Too busy pocketing the money and letting the company go under

 

[hogpatrol]

How to become a millionaire in the gun building business? Start out as a multi-millionaire.

 

[Bc'z]

At one time I felt the same way as many of you. I looked at what Gunwerks offered and what they charged and thought it was over priced. Since I have shifted into building rifles full time as 100% of my income, I now have first hand experience that has changed my mind. Almost every business out there has high margins in mark up. The every day stuff we buy is usually marked up over 100% by the time we buy it. Shop labor is over $100 an hour in most parts of the country. I think Gunwerks is how custom rifle building looks when normal business practices are applied to the custom rifle world. What your average smith is charging, provides him a living wage, not a profit to grow a company. Custom rifles are expensive, but if you put them into perspective compared to any custom US made precision products, its one of the best cost/value things left in my opinion. The reason is because the people in this business are passionate about it and profit is not the goal.

I wish I got $100 an hour.
I'm thinking I might make more money at
IN and OUT Burger than I do painting stocks...

But I wouldn't have near as much fun, nor meet at many good folks.

 

[johnfred1965]

Lots of good folks at IN and Out Burger! I ate there every day when I visited my Niece and her Jarhead in San Diego.

 

[johnfred1965]

I think Gunwerks is how custom rifle building looks when normal business practices are applied to the custom rifle world

I would like to be a gunsmith and custom gun builder, I believe I could do the work, but I have a business education and that is probably how I would end up. The real custom gun builders are all the people on here that are artists with wood and metal. That is the true value of the business and it doesn't show up on a spreadsheet.

 

[JJMoody]

You can flip burgers for minimum wage a max of 8 hours a day for someone else, but in small business, you can work minimum wage for 24 hours a day! Yay for profits! Too many people are griping about something that quite frankly is none of their damn business! Too many jumping to conclusions without a full picture of what’s going on. I’m not defending or sticking up for any actions from either side, but man, it seems like some really WANT to believe GW is a bunch of scoundrels and inept business folks. Lotsa finger pointing and “conclusive” posts here. Let ALL the facts come out before you spread garbage.
Another adage I found appropriate when pursuing a passion that don’t necessarily pay through the nose—-
“Wanna know how to make a small fortune in ______?.... start with a large one!”

 

[Alex Wheeler]

I wish I got $100 an hour.
I'm thinking I might make more money at
IN and OUT Burger than I do painting stocks...

But I wouldn't have near as much fun, nor meet at many good folks.

Just open up a body shop. Many get those rates.