By Joseph P. Tartaro | Executive Editor
The latest casualties in the current battle over gun control may be found in the gun business theater, where skirmishes are being fought almost daily. This gun industry update for May 4 involves Vista Outdoors, Springfield Armory, Dick’s Sporting Goods, big banks and insurance companies, and the state of New York.
In late April, New York’s anti-gun governor, Andrew Cuomo, decided to “weaponize” the state’s insurance industry and banking regulatory power to put pressure on banks and insurance companies to stop doing business with the National Rifle Association and firearms manufacturers. This was even after Bank of America and Citi Bank announced that they were abandoning gun manufacturers and retailers unless they complied with restrictions imposed by the financial giants.
Cuomo’s recent directive to financial regulators puts pressure on private companies to break ties with the NRA “or else.”
His directive said:
“I am directing the Department of Financial Services to urge insurers and bankers statewide to determine whether any relationship they may have with the NRA or similar organizations sends the wrong message to their clients and their communities who often look to them for guidance and support.”
The Department of Financial Services, which regulates the banking and insurance industries in New York, followed up with guidance letters to insurance companies and banks.
A few days later, Hornady Manufacturing struck back in response to wat it called “one of the most despicable acts ever perpetrated by any state by asking New York banks, financial institutions and insurance companies to stop doing business with the gun and ammo industry.”
The statement released by -Steve Hornady, president of Hornady Manufacturing Company, noted:
“While it may not make a difference to New York, Hornady will not knowingly allow our ammunition to be sold to the Government of the State of NY or any NY agencies. Their actions are a blatant and disgusting abuse of office and we won’t be associated with a government that acts like that. They should be ashamed.”
Hornady has a long track record of supporting the shooting and hunting industry through advocacy programs, including legislative action alerts and letters, educational initiatives, and promotions, working with the National Shooting Sports Foundation (NSSF), the National Rifle Association (NRA) and other trade associations to promote, protect and preserve hunting and shooting sports.”
While Cuomo and Hornady were trading volleys it became public knowledge that Dick’s Sporting Goods, and its subsidiary Field & Stream stores, had hired communications firm Glover Park Group to lobby on Capitol Hill in support of further gun control.
Glover Park describes their services as “an integrated and complementary suite of services to plan, build and execute all manner of communications tactics, campaigns and programs.” They have worked on such campaigns as the Iran Nuclear Deal and they list legislative and regulatory strategy as one of their “tools in the toolbox”. These moves made it very apparent that Dick’s no longer feels it is enough for them to push gun control policy in their stores and destroy rather than sell off its existing stock of modern sporting rifles, but that they have their sights set on a much larger prize.
As Dick’s begins their coordinated efforts to influence public policy on Capitol Hill, firearm brands are taking notice. On May 3, Springfield Armory issued a statement that they will no longer supply their products to Dick’s. Springfield’s official announcement said:
“Springfield Armory is severing ties with Dick’s Sporting Goods and its subsidiary, Field & Stream, in response to their hiring a group for anti-Second Amendment lobbying.
“This latest action follows Dick’s Sporting Goods’ decision to remove and destroy all modern sporting rifles (MSR) from their inventory. In addition, they have denied Second Amendment rights to Americans under the age of 21. We at Springfield Armory believe that all law abiding American citizens of adult age are guaranteed this sacred right under our Constitution.
“It is clear where Dick’s Sporting Goods and its subsidiary, Field & Stream, stand on the Second Amendment, and we want to be clear about our message in response. Their position runs counter to what we stand for as a company. At Springfield Armory, we believe in the rights and principles fought for and secured by American patriots and our founding forefathers, without question. We will not accept Dick’s Sporting Goods’ continued attempts to deny Second Amendment freedoms to our fellow Americans.”
Then, on May 4, the National Shooting Sports Foundation® (NSSF®), the trade association for the firearms, ammunition, hunting and shooting sports industries, Board of Governors voted unanimously to expel Dick’s Sporting Goods from membership for conduct detrimental to the best interests of the Foundation.
The NSSF press release said:
“Dick’s Sporting Goods recently hired a Washington D.C.-based government affairs firm, for “[l]obbying related to gun control.” Dick’s Sporting Goods CEO Edward W. Stack announced earlier this year the retail chain would end sales of modern sporting rifles, voluntarily raise the age to 21 to purchase firearms in their stores and called for more restrictive legislation. Dick’s later announced they would destroy the remaining modern sporting rifle inventory. NSSF responded that business decisions should be individually made, but was nonetheless disappointed and the decision does not reflect the reality of the vast majority of law-abiding gun owners.”
While not directly connect to the turbulence over new gun restrictions, but a reflection of the impact it has within the business community, on May1, Vista Outdoors announced that it is considering putting Savage Arms up for sale as part of a “strategic business transformation plan.”
“Our review identified product categories that are core to the company’s long-term business strategy,” said Vista Outdoor Chief Executive Officer Chris Metz.
“We believe future investment should focus on categories where Vista Outdoor can achieve sustainable growth, maximize operational efficiencies, deliver leadership economics, and drive shareholder value,” he continued.
Apparently, Savage Arms and the Stevens brand aren’t one of those core categories.
While it may be giving up Savage, Vista Outdoors does not plan to altogether leave the gun business. The company said that it will focus on ammo manufacturing, presumably with its Federal Premium brand, “while saying “Vista Outdoor is excited about the potential of each of our core businesses, particularly ammunition, which is our largest core business, according to Metz.
News of this announcement reportedly caused publicly held Vista’s stock to fall 17 percent to $13.85, according to Bloomberg News.
