Palmetto State Armory Buys Destructive Devices Industries

I recently received an email from Adam of PSA.

JJE Capital Acquires DDI under same umbrella as PSA
Columbia, S.C. (January 2,2017)- In an acquisition that strengthens the USA made AK market JJE Capital (PSA’s parent company) announced the purchasing of a majority equity interest in the boutique firearms manufacturer and importer Destructive Devices Industries. Palmetto State Armory CEO Jamin McCallum was quoted saying “This move will allow a concentrated effort by both PSA and DDI to continue the growth of the all American made AK-47 and its variants.” David Fillers of DDI will continue with the company as a financial partner as well as in an advisory role, he was quoted saying; “It was time to take DDI to the next level, and the best way I saw to do that was to partner with a proven industry leader.” Both PSA and DDI will remain separate entities, but will partner on R&D and compatibility in all related fields in order to pass on the benefit to the customer. This level of detail will be acquired through a joint venture between the two companies known as the “AK Excellence Center” which will be located in Columbia, SC and will focus on new developments for the iconic firearm. DDI also announced that its focus moving forward will be the US production of quality rifles. DDI will continue to stand behind all imported items that were previously sold, but from this point forward will no longer be a firearms importer. Adam Ruonala, Chief Marketing Officer of Palmetto State Armory said; “This move is a chance for two innovators of the American AK platform to come together, and with that kind of creativity at the helm, there is no telling how far this ship can go!”

Very interesting to see what they come up with together. I wonder how this will affect some of DDI’s other projects like the LA-K12 Puma bullpup QBZ style shotgun?

Perhaps we will find out more at SHOT Show.



Nicholas C

Co-Founder of KRISSTALK forums, an owner’s support group and all things KRISS Vector related. Nick found his passion through competitive shooting while living in NY. He participates in USPSA and 3Gun. He loves all things that shoots and flashlights. Really really bright flashlights.

Any questions please email him at nicholas.c@staff.thefirearmblog.com


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  • yodamiles

    Cheaper DDI products..Maybe..

  • Threethreeight

    RIP DDI

    Now all their customers can risk credit card fraud because of PSA’s crappy payment processor. 😀

    • USMC03Vet

      Nope. PSA is good to go. Some other AK distributors though are notorious for immediate credit card fraud. On AK Files there are always threads about it happening but having used PSA previously no problems.

      • Joe

        Not sure about that. I’m a frequent follower of the /gundeals/ reddit and people there complain about credit card breaches from PSA all the time. Their deals are good, so the consensus is to get a prepaid debit or have your bank issue a temporary card number when purchasing from them.

        • Vhyrus

          As someone who has purchased no fewer than 4 guns from psa, both online and in person, over a period of about 5 years, I am calling shenanigans on that assertion.

          • Joe

            You’re saying the the people that make these claims are making this up? Nobody is saying “if you buy from PSA your data will be stolen”, but it seems to happen semi-frequently and your sample size is four transactions. Nobody is even saying PSA is a bad company, most speculate it’s the fault of the credit card processing company. All I’m saying is there are steps to protect yourself before transacting business with them.

          • n0truscotsman

            I also call shenanigans. Ive been dealing with them since 2014, and haven’t had any issues. Five other people I know have the same experience. Reliable, consistent to the point of being boring. And thats OK.

          • Ray H

            y debit card info was comprised a few months after I made a purchase from PSA. This was right before my bank got the Chip Cards (Jan 2016) FYI…that was my only online purchase ever on that card. Was my 1st and only purchase from PSA too. You do the Math and call that Shenanigans?!

      • Kefefs

        What do you mean “Nope”? Your personal experience somehow invalidates the countless people complaining on reddit and gun forums about their CC’s being stolen after buying from PSA?

        • USMC03Vet

          reddit is awful.

    • Ebby123

      False.
      I’ve done business with PSA for years without issue. Also the source of credit card fraud is rarely that traceable. My guess is you are speculating.

  • BattleshipGrey

    My guess would be that they’re going to be manufacturing stuff directly for PSA. I just went to DDI’s website and all the AK parts are listed as “sold out”. If I’m right, hopefully that’ll lead to quicker shipping times on PSA’s part… lol.

    • Burner

      No, they closed everything down in knoxville, leaving everyone there that worked for them with no job, without any notice, the owner is a scumbag

      • Nicks87

        Please post some sources on this otherwise stop repeating it.

        • USMC03Vet

          Owner posts regularly on AK Files. Name is David Fuller. He said he offered some transfers.

      • Ebby123

        1 – Cite your sources or it didn’t happen.

        2 – Why, in your mind, does that make the owner a scumbag? Its called a free market economy. You are not OWED employment by anybody, you are only owed payment for the hours you have already worked.

        • Leonardo Padrino

          But if what he says is true, lack of notice makes you a scumbag.

          • Ebby123

            Why on earth would it? Which contract is that a breach of?

            This is standard business practice. You don’t tell people they’re being let go, and then let them hang around for a few more weeks to see if the less moral among them will vindictively destroy your business.

            A ticked off employee can cause “you’re out of business” levels of damage to expensive equipment or information in a matter of minutes.

            It may seem cold, but that’s how the business world operates, and for good reason. You are not OWED employment. You are only owed payment for the service you have performed.

          • Ratcraft

            You would be a dandy to work for. Good thing no one ever will.

          • Ebby123

            They already do, and we all get along.

            If you find this kind of thing shocking, its only because you have very limited experience in the business world.

            Like it or not, this is how its done, and its done this way for a VERY GOOD REASON.

          • Ratcraft

            I knew you would come back saying you employ people. You don’t. No since going any further. You are a liar.

          • Ebby123

            Thank you for your thoughtful, rational, factually supported contribution to this discussion.

      • NearlyTree

        That is horseshit. Yes they moved and yes it was rapid. However that was a long time in the making and the ones who couldn’t make the move were offered a severance package. The people who stayed got bonuses. Don’t spread blatant misinformation.

  • thedonn007

    I did not realize that PSA was that big of a company to be able to buy out other companies.

    • Vhyrus

      If we are lucky, PSA will become a nationwide chain similar to Cabelas in a few years. I used to live in SC and have purchased many guns from them over the years. Their prices have been increasing as of late but they still have one of the more competitive builds in terms of price and quality.

    • Harry’s Holsters

      Ask around what kind of AR people own and you’ll likely find PSA or a PSA parts gun is second only the SW Sport. They are absolutely huge.

      • thedonn007

        Yea, I have had a few of their uppers in the past, I would bet that I have spent over $2,000 on uppers, mags, scopes, firearms, etc from PSA, I am too afraid to add it all up. I guess their margins are higher than I realized, or perhaps DDI is not as big as I think it is.

        • ostiariusalpha

          DDI is not big, they’re bigger than a custom shop, but not by a lot.

        • Harry’s Holsters

          Even if they are only making 15% on ARs and AR parts they turn over their inventory really fast. I’d say within a week or two at most based of how quickly items go out of stock. That leads to a ton of profit in the end. Also who knows what their credit terms are. They may turn over inventory 5 times before they have to pay for their first delivery.

    • Stephen Shallberg

      PSA just spent at least $20 million opening two retail stores here in the Low Country, one in Mt. Pleasant and one in Summerville.
      At the Summerville location, which PSA bought outright, and which also includes apartment complexes, they completely rebuilt a huge abandoned shopping center. This store features a gun range and an archery range. The rebuilt shopping center is huge as I said, and also includes a Planet Fitness and lots of other retail space that is steadily being leased out.
      PSA has big plans, and they seem to know what they’re doing.

  • Burner

    DDI sold out, and also sold out its employees, leaving them without jobs with no notice

    • Maximilian Johannes Benning

      ? how do you know that?

    • Ebby123

      Link or it didn’t happen.

      Also, a disgruntled ex-employee proclaiming how wronged he was for being let go only serves to demonstrate your own lack of business acumen. There is no unwritten contract for someone else to provide you with eternal employment.

      You work, you get paid for your work. At any time you or your employer can end this voluntary arrangement. You are not entitled to job security, except that which you create through the accumulation of marketable skills.

      “The only REAL job security that exists is leaving work on Friday with the knowledge that you could have a different job by Monday should you so choose.”

  • Drew Coleman

    According to a forum post (so take it with a grain of salt), they laid off all of DDI’s employees right after Christmas. If that’s the case, I won’t be taking my business there.

    • Ebby123

      Why? That’s how the free market works.
      There is no unwritten contract of eternal employment. You are only entitled to be paid for the work you have done.

      • Bjørn Vermo

        A contract cannot be cancelled by one of the parties without valid reason. An agreement of employment is a contract, written or verbal. Wise people make the agreement in writing, verbal agreements are just as binding but usually difficult to prove.

        • Drew Coleman

          That’s not how at-will employment works. You can be fired at pretty much any time without notice for no reason at all.

        • FarmerB

          Bjørn, this isn’t Scandinavia. Look up “at will employment” in Wikipedia.

        • Ebby123

          As much as that sounds more compassionate, that’s not how the business world works. The only obligation that exists is for businesses to pay people for the work they have already performed.

          The worker agrees to sell their labor at a certain price, and the business agrees to purchase that labor at a certain price.

          When the worker no longer wants to sell their labor, or the business no longer wants to buy it, the voluntary arrangement ends, and they go their separate ways to pursue other opportunities.

    • That depends @disqus_zqVpgaayZU:disqus were they told beforehand it would be a possibility? Did they get a Christmas bonus at least?

  • Nicks87

    I think this is a good thing. DDI had some quality control and customer service issues. I would expect PSA has the resources to fix those problems.

  • Joe Gamer

    I’m betting we will see A LOT of company consolidation over the next two years.

  • Ryan L

    Supply chains are getting shorter across every industry. Makes sense that a major distributor/retailer would want to tie up a major supplier and make sure that they have inventory to sell.

    I wonder what angle Atlantic will take?

  • UWOTM8

    Sounds like PSA is about to make American AKs great again….

  • Jafo

    Well, this is a bit concerning. Cant say as I can blame Fillers and his partner for cashing in, but I’m not sure what it does to the brand now. Dont think he can be the salesman as he was. DDI’s rep was based on him being on the ground, and it was also based on the Hungarian and Polish kit guns. The jury is still out on US made guns and now the whole thing is thrown into limbo. I guess I’m glad I got a Hungarian DDI before they went extinct, but a little concerned about support now. Also seems kinda rotten giving zero notice, hope they got some kind of package. It’s difficult to predict their future now. If i had known all of this then, (and known Trump was going to win!) i probably would have just held off and kept saving up in hopes that the Saiga’s start flowing in again (and Mr Krebs will whip up another batch of those delicious AC-15 mod 2’s) and drop the dime for a top notch AK. Que sera. My hungarian DDI is pretty sweet. They do make a fine receiver and put this one together right… I guess it will end up as the beater in the collection.

  • Dan

    It doesn’t matter. That’s how buisness works. It sucks for the employees but such is life.
    There are some very good reasons for not giving notice before letting everyone go. It happens.

  • Oleg Von Gassheimer

    good, they were junk rifles approaching I.O tier.

  • Ebby123

    That is, of course, your choice. For the record I don’t like these actions either, but that how the business world works.

    IE: What time of the year is it “good” to fire someone?

    I’ve been part of three different companies that let people go – there isn’t a good time.

    • n0truscotsman

      You’re absolutely correct. There is no good time.

      From my experience, your statement about disgruntled people also brings back some unpleasant memories. Never underestimate a person’s tendency to twist off, especially in competition over lost resources.

      • Ebby123

        Yup.

        “If ya have to eat sh*t… its best not to nibble.
        Bite, chew, swallow, repeat.” -Walking Dead

  • Ebby123

    Laying someone off is business. The fact that you can’t see it as anything other than a personal insult speaks to your business naivety.

    You don’t have to like it – hell, I don’t. But that’s how the business world works, and for good reason. Disgruntled people destroy property, steal merchandise, and generally represent an enormous financial risk if allowed to hang around after the break up has been announced.

    Not all are dicks like that, but statistically there will be at least a few in every group, and they can do incredible damage in a short period of time.

  • Ebby123

    The point of the quote is that job security is a myth, predicated on an entitlement mentality.

    You are the only one who can give you job security. You do this by increasing your market value, and having a plan B.

    • marine6680

      Your first point is speculative/conjecture…

      Your second is false… as without availability of a job, your skill level is inconsequential…

      3a… See above

      3b… Not really reasonable in the current state of society. You can’t have a perpetual job waiting just in case. Moving to the sticks and starting a farm isn’t either.

      Self reliance is not easy with how things are set up now. You can’t simply pack up and go homestead somewhere. Most of the population are reliant on the job market, and the companies they work for staying in business and looking out for their well being as well. So long as they perform their jobs satisfactory.

      The ideals you seem to espouse… We did that once… it literally lead to defacto slavery… Its why there are worker protection laws now.

      • Ebby123

        (1) No, its really not – its a demonstrable fact.
        Unless you have a written contract, you have no legal job security, only a tenuous trust that your interests and the business’s interests will continue to coincide.

        (2) Outside of a depression, there will always be jobs in this country for those willing to go get them. Always.

        If you can’t find one, you need to either:
        (1) Increase your market value (get more skills, a degree, etc)
        (2) Move to where the work is.
        (3) Get help learning how to look in the right places.

        For those who “can’t” move, that is your choice. You choose to place your current living situation at a higher priority than finding work – and that’s perfectly OK! Just recognize that you did make a choice.

        • marine6680

          1) I was more referring to your assertion of “entitlement”, it’s a word that gets overused in my opinion. It tends to shut down conversations rather than encourage them.

          2) I agree that there will always be some jobs, and that no job is beneath someone. But as a matter of practicality, someone who has debt (house, cars, etc) can not expect to take a job making less than is required to pay for those debts, and manage to get by. So “any” job is not tenable… even if you kept debts in check, if you made middle class wages before, and own a decent house and car, low wage jobs are not tenable.

          The current job market is still not recovered… And the job market was altered by the downturn. With many positions being part time to avoid benifits, “entry level” positions requiring significant prior experience… and other issues. It’s not a myth that the job market has turned against the workers to be in favor of the businesses. Marketable isn’t always enough.

          Even with marketable skills, finding a job is hard… even trying to move laterally into a job at another company while you continue to work is hard enough sometimes.

          Moving is not always practical… moving requires a lot of money. The cost to move, the cost to get utilities started, the cost to just get into a new home for rent or purchase, and the cost to break a lease if in one… Owning a home and moving means selling, and the market is down in much of the country, meaning possibly floating two home payments at once.

          Thinking ideologically does not always fit within reality.

          Ignoring the very real limitations imposed by real world practicality, to uphold ideological principles does not help those affected by the situations they face.

          And this is coming from someone with highly marketable skills who very recently lost a job, and had two on offers within two weeks, each several states away, and then moved 1500mi to take one of them.

          But my fiancé who has two degrees, has had much more difficulty in finding a job, let alone one that pays more than a few bucks over the local minimum wage, well below what her credentials should get. She even had one job where she worked a week and a half, and the company literally disappeared on her. She never got paid a dime. Luckily it has improved a bit, she has been steadily employed for the past four years, and only a couple brief lapses over the past six… but the move did prove a little difficult for her to find local employment in her field, and she is still a little underpaid. Luckily her prior company allowed her to do remote work, not that they really had a choice given her vital role, with no ready replacements in the area.

          So I have seen both sides on the coin…

          • Ebby123

            Agreed, there are two sides.

            I apologize if I sounded a bit prickish, it just really gets under my skin when business owners (who create the job in the first place as a by-product of their business success) are demonized for continuing to do what’s best for the business.

            Finding jobs is difficult, and for those who have not struggled in this area it is easy to write off the difficulties of others. That’s a trap I don’t want to fall into.

            That said, many people need to raise their own expectations for what is “necessary” to find a job. Many have never learned that you have to do more than fill out applications and wait for a response.

            If I could give one piece of advice to people, it would be this:
            You need to be laying the groundwork for your next job NOW, not wait until there’s a crisis and you’re unemployed. Your resume should be complete and updated, your Linkedin profile should be diligently developed, and above all you must dedicate yourself to NETWORKING.

            I wish these skills were taught in school…

          • marine6680

            No problem…

            I don’t personally fault the owner of DDI for selling it to another company.

            I do find fault with not giving any warning to his current employees. (if those assertions are true)

            Without warning, you can not prepare ahead of time to find new employment, hopefully having it lined up and ready for when the first ends.

            You can’t tighten your belt and save a little extra just in case.

            You can’t reasonably make an informed decision on whether or not to relocate, when given the option out of the blue, with no time to examine your options.

            I just do not think blindsiding employees with a pink slip is acceptable. You may not “owe” them anything other than their wage compensation… but from a moral/ethical and kind hearted standpoint… You do owe them a warning and chance to handle their own affairs.