#Corporate

If you’re a firearms enthusiast, you’re almost certainly familiar with the venerable 1911. And if you’re a 1911 fan, you have no doubt at least heard of Kimber. Though they are certainly not the only 1911-centric shop in the game, they are easily one of the most well-known. And while 1911s tend to be their flagship, Kimber is actually involved in numerous other areas of the market with a plethora of other models and designs in their catalogue – including some striker-fired and revolver options. It may surprise some readers to learn that they were actually “founded with the sole purpose of building the finest classic sporting rifles ever offered in America,” as stated on their website, and only got into the 1911 game later.

In a surprise announcement at the 2018 SHOT Show, gunmaker Weatherby revealed that they will be leaving the state of California, where they have been based since their founding in 1945. The company’s new home will be Sheridan, Wyoming, the sixth largest city in the state, nestled beside the Bighorn Mountains, and close to the border with Montana. The move was announced with little notice on the floor during the afternoon of the show on Monday, with the Wyoming Business Council in attendance. Adam Weatherby, founder Roy Weatherby’s grandson, cited strong economic incentives from the Wyoming Business Council, as well as more freedom to develop new products without onerous legal restrictions as reasons for leaving California.

Broadsword Group, LLC, the owners of Sharps Rifle Company (makers of the Relia-Bolt and .25-45 Sharps upper receivers for the AR-15), has been ordered to pay nearly three quarters of a million dollars to one of its founding members, Michael H. Blank, by the US District Court of Eastern Missouri. The case began when Blank alleged that Sharps Rifle Company owed him stake in the company and that they had walked away with intellectual property (IP) that he owned. Most significantly, perhaps, is the ruling on allegations of fraud against both Broadsword Group’s President and their CEO:

With the recent push for small arms ammunition with increased range, power and capability, are military customers in danger of being taken for a ride by industry marketeers working to sell rifles in new calibers? Is the primary driving force behind new infantry calibers not in fact a need to be addressed, but a desire to sell weapons in a stagnant small arms market?

We have just seen the cancellation of the Interim Combat Service Rifle, which gives me a good springboard to talk about marketing. Specifically, we will be discussing a kind of undercover word-of-mouth marketing that I’ve encountered a number of times over the years.

Orbital ATK, the defense contractor who manages and operates the Lake City Army Ammunition Plant, will soon be bought by defense giant Northrop Grumman, according to an article released on Reuters. The purchase price is expected to be close to $8 billion USD. From Reuters:

According to a press release issued earlier today by Heckler & Koch, the Chairman of the Executive Board and Chief Executive Officer of parent company H&K AG Norbert Scheuch has been terminated from his position by the supervisory board. The release also stated that Wolfgang Hesse, the current sole Executive Board member, would be taking over operations for Heckler & Koch until Scheuch’s replacement can be appointed.

Via a press release published earlier this month, German gunmaker Hecker & Koch announced it had reduced its financial debt to a mere €170 million (~$194 million US), thanks to an equity increase of €50 million via a capital shares increase. With this, the company will issue approximately 6.6 million new shares, backed up by a capital injection of €50 million, and assistance in refinancing its 9.5% Senior Secured Notes at significantly lower debt. According to the release:

The post-election gun industry downturn has hit Federal Premium Ammunition, which laid off a significant number of its employees earlier this month. 110 of the roughly 1400 workers at the company were let go from the company’s Anoka, Minnesota plant, the company confirmed. This announcement surprised Minnesota state officials, who had before the end of last year granted the company set of grants and loads worth $1.15 million to expand. Federal informed the state that these grants would no longer be necessary, and that they were cancelling them. Although the expansion is expected to continue, the hiring goals that were conditions of the grants are no longer achievable, Federal said.

Heckler & Koch announced on the 17th that the primary shareholder, Andreas Heeschen, has provided H&K’s GmbH’s parent company, H&K AG with 60 million Euros. The new shareholder loan is to assist with H&K GmbH’s cashflow and repayment of various outstanding loans.

It seems the recent Ares Armor drama may soon be resolved. After publicly firing founder Dimitrios Karras, the CEO of the company Bryce Stirlen has apologized in an open letter for the firing and his public remarks. This comes after Karras responded, telling his side of the story to TFB. Stirlen’s letter is reproduced below:

Heckler and Koch announced in a recent press release that Nicola Marinelli has been appointed to the Board of Executives, and would be taking over as manager of operations: