The Bangor-based firearm maker started by Bushmaster Firearms founder Mack Gwinn Jr. has filed for Chapter 7 bankruptcy, seeking to sell all its assets to resolve its debts.
MG Industries Inc. on Thursday filed for bankruptcy protection, listing somewhere between $0 and $50,000 in both assets and liabilities.
The company had not filed detailed schedules of its debts as of Tuesday, and the company’s founder did not respond to a phone call seeking comment Monday.
MG’s downfall comes after years of growth and big expectations. The company’s sales manager told Mainebiz in 2010 that the firm’s executives expected sales to rise 40 percent to 50 percent for the next four to five years, after scoring sales to Bangor and Milo police departments and the Penobscot County Sheriff’s Office.
The company had also landed other police contracts around the country, including in San Bernardino, California. The company’s primary product was the Hydra, a rifle similar to the AR-15 that can change the caliber of ammunition the gun fires.
In a 2012 interview with the Bangor Daily News, Gwinn Jr.’s son and MG Industries president, Mack Gwinn III, called the Hydra the most versatile assault rifle on the planet. The company was then manufacturing its weapons at a building on Old Town’s Main Street.
Its bankruptcy filing lists the principal place of business as a private residence on Cottage Street.
The company was the last business started by Gwinn Jr., a former Army Special Forces member and designer of the Bushmaster pistol, which he began selling in 1974 from an office at Bangor’s Bomarc Industrial Park.
Shortly after, that company fell into bankruptcy and Korean War veteran Richard Dyke purchased the company for $241,000, according to The New York Times. In Windham, it grew into a giant in the industry and sold in 2006 for $70 million to Cerberus Capital Management. Cerberus merged it with other gun companies to create Freedom Group.