Accusations claim Gunwerks has defaulted on $2.8mil in loans, is behind over $300k in back taxes over the last two fiscal years, and allegedly has transferred debt and potentially sold at-stake collateral to service other debts, and has entered into receivership, such Wells Fargo can recover against the debt. Interestingly, equipment and inventory are included, as well as intellectual property - which could have interesting implications for potential continued operations. It’s unclear whether Wells Fargo’s appointed firm will merely piece out the equipment or potentially continue operations to recover their debt.

Ultimately, it appears Gunwerks leveraged themselves far beyond their means during their recent expansion. Indications suggest this doesn’t really relate to the coronavirus pandemic.

K2 Radio Wells Fargo sues Cody firm Gunwerks