ODESSA — Rifle manufacturer Adams Arms has a new owner — its former creditor.
At a public auction this week, the newly formed Adams Arms Holdings LLC (AA Holdings), headed by Michael Margolies, CEO of Littlebanc Advisors, acquired the firearm company's assets after it defaulted on a $5.1 million debt.
Adams Arms moved to Pasco County from Palm Harbor in 2012 after acquiring $2.7 million in financing from Littlebanc. The lender's affiliate, LB Merchant AA-2, was one of the two creditors that forced the auction.
The company manufacturers military-grade rifles, retrofit kits and other firearm accessories. It operates out of leased space at 1551 Gunn Highway. It formed in 2007 and said it employed 100 when it expanded to Pasco seven years ago. This week, the company said it employed fewer than 50.
Paul Miller, Adams Arms chairman and CEO, said the company's brand name would continue and the newly formed Adams Arms Holdings would fulfill all customer orders and honor previously issued lifetime product warranties.
"With a clean balance sheet AA Holdings will be able to focus on providing new products, superb quality and complete customer satisfaction,'' Miller said in a released statement.
The former parent company, known as Adams Arms LLC, will close after all assets have been transferred, Miller said.
Contact C.T. Bowen at email@example.com or (813) 435-7306. Follow @CTBowen2.