Gunwerks CEO: No Lawsuit, No Deliquency, No Financial Distress
Written by andrew-rossi on May 26, 2020
Gunwerks says everything you’ve heard is wrong.
A statement from Gunwerks CEO Aaron Davidson was released to share the “truth” behind the sensational revelation that the Cody-based gun manufacturer was facing a $2.8 million-dollar lawsuit from Wells Fargo. That lawsuit has been settled. Gunwerks paid off the credit line they owed the bank within two days of the filing, and is currently working with Wells Fargo to ensure things to escalate to this point again. They claim the true issue was “a difference of opinion on asset valuation” rather than late payments.
The statement also sought to correct the many statements regarding Gunwerks’s financial status. Contrary to claims made in the filing, the company not in financial distress. It is not delinquent on sales tax payments. Nor is it late in paying its associated vendors. Quite the contrary – Davidson’s statement touts 2020 as a record year, with record sales performance and profitability – it could be the company’s best year on record. While they acknowledge it may take some time to recover from the damage this has caused to their reputation, Gunwerks is looking at this as a minor incident.
While it has been settled, the Wells Fargo lawsuit against Gunwerks has not been formally dismissed. That is expected to happen very soon.