Court Approves Watchtower Firearms DIP Financing

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posted on July 15, 2025
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Court Approves

Watchtower Firearms was granted final approval for debtor-in-possession (DIP) financing by the U.S. Bankruptcy Court for the Northern District of Texas in late June. The firm, which specializes in providing firearms for the law enforcement community and high-end versions for consumers, filed for Chapter 11 Bankruptcy Protection in February this year to restructure and reorganize its financial structure.

The decision to file for Chapter 11, according to Watchtower Firearms founder and CEO Jason Colosky, was an effort to streamline internal operations. Staff members continued to be paid and orders met—including the Lafayette (LA) Police Department’s purchase of 118 Watchtower Type 15M rifles in March—while awaiting the court decision.

“Watchtower Firearms is an excellent company with great people known for its high-quality products and well-earned reputation for excellence,” said Colosky, who is a former Raytheon executive and veteran of the U.S. Marine Corps. “To navigate the current challenges facing the company, we determined that decisive action is necessary to re-position and grow the company. We are confident that these steps will position the business for long-term success. 

The approved DIP financing will be used to maintain essential business operations, including the purchase of materials and parts necessary for manufacturing, along with providing sales and service to customers. Watchtower was established in 2022 and manufactures its products in its Spring, Texas, headquarters.

“We want to thank our customers, vendors, lenders, and stakeholders for their unwavering support, which reflects their confidence in our business and our team,” Colosky said. “This support will enable us to navigate swiftly through the court-supervised process. We remain committed to maintaining the highest standards of operational excellence across all our products. We are continuing our operations without compromise to our high standards and customer service. The company remains dedicated to working collaboratively with its stakeholders—employees, customers, and creditors—to achieve a successful and effective restructuring outcome.”

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