Hudson Manufacturing, makers of the much-vaunted Hudson H9, filed for Chapter 7 bankruptcy on March 14th. This is, presumably, in direct response to their previously cataloged troubles. Cambridge Valley Machining has sued Hudson over unpaid debts after being contracted to machine parts for them.
Chapter 7 Bankruptcy
There are several different types, or chapters, of bankruptcies that individuals and companies can file for. Hudson has filed for Chapter 7 bankruptcy, meaning that they have chosen to liquidate all their assets to absolve their debts.
There are some interesting titbits in Hudson’s filing. First, their estimated assets are less than $50,000 USD. However, their liabilities are somewhere between $10 million and $50 million dollars. In fact, according to the filings, Cambridge Valley Machining might not even be their largest creditor. While estimates of how much Hudson owes Cambridge Valley vary, the value is certainly more than $500,000, and probably under $1 million. That leaves at least $9 million in debt unaccounted for, and possibly as much as $49 million. Their list of creditors spans 18 pages.
What Comes Next
Hudson Manufacturing will go through the bankruptcy process. Excluding any assets that Hudson petitions to be labelled as exempt, everything will be sold off. For those customers who’s guns are currently in Hudson’s possession for warranty service or what-have-you, I don’t know what will happen. Technically they are not Hudson’s property and should be exempt from the sell-off. However, due to Hudson’s financial woes, it is unlikely they have the money to pay to ship them back to their owners.
As I mentioned in my previous post, there is currently an ongoing effort to create a class-action lawsuit against Hudson. It is catalogued at H9owners.com. At the time of publishing Josh Supnick, the creator and initiator of the lawsuit has not yet replied to a request for comment. Hudson Manufacturing’s website is still active, but their email addresses return an undeliverable error, and could not be reached for comment. The article will update as more information becomes available.