Big Rock Sports Lawsuit: Chapter 7, Vendor Claims, and Liquidation

Big Rock Sports, LLC filed for Chapter 7 bankruptcy on January 16, 2026, in the U.S. Bankruptcy Court for the Eastern District of North Carolina, ending operations at one of North America’s largest wholesale distributors of firearms, fishing tackle, and outdoor sporting goods.¹ The company reported more than $100 million in liabilities against assets worth a fraction of that, and court papers stated that after administrative expenses, no funds would be available for unsecured creditors.² Roughly 20,000 retailers lost a key supplier, and vendors are facing tens of millions in losses they are unlikely to recover.³

The Case at a Glance

The Chapter 7 petition was filed in the Eastern District of North Carolina’s New Bern Division as case number 5:26-bk-00208, before Judge Joseph N. Callaway. Algernon L. Butler III of Butler & Butler, LLP was appointed trustee.¹ Five related entities are being jointly administered under the lead case: Big Rock Sports LLC, Big Rock Holding LLC, Calcutta Outdoors LLC, BRS HQ LLC, and parent Peak Global Holdings LLC.⁴ Big Rock attributed the liquidation to a “liquidity crisis” in its U.S. operations.²

What Vendors and Unsecured Creditors Can Expect

The financial picture is grim for anyone owed money. Big Rock reported total liabilities of $100.9 million against estimated assets of $10 million to $50 million, with about $7 million in personal property and real estate values listed as undetermined. Of the liabilities, $83.2 million consists of unsecured claims. The company also carries nearly $70 million in subordinated debt: $37.2 million to Stephens Capital and $32.5 million to BLHIT Capital of Mountain Home, Arizona.⁵

The case was designated “no asset,” meaning the estate has limited or no assets available for distribution to unsecured creditors.⁶ Court papers confirmed that after administrative expenses are paid, nothing is expected to remain for unsecured vendors.² Filing a proof of claim preserves your position in the queue, but the queue is not expected to pay out.

The Biggest Vendor Claims

Much of the $83.2 million in unsecured debt comes from vendor lawsuits that were already active when Big Rock filed. The largest claims tied to litigation were:²

Pure Fishing, Inc. — $3.85 million
Rather Outdoors Corp. — $2.8 million
Maine Pointe, LLC (a supply chain consulting firm) — $1.82 million
Okuma Fishing and Tackle Corp. — $438,486

Property owners August 31 Holdings LLC ($157,166) and 302 Saunders, LLC ($66,373) also held litigation-related claims, alongside smaller vendors including G5 Products and Wicked Lures.²

The trouble was not sudden. Industry sources told trade publications the company’s problems had been an “open secret” for more than a year, with Big Rock falling behind on vendor payments and closing its Hamlet, North Carolina distribution center in 2024.⁷ One leading supplier blamed “outside ownership increasingly disconnected from the fishing industry”; others pointed to logistics and systems problems.⁸

The Canadian Subsidiary Fell First

The Canadian arm, BRS Canada Acquisition Inc., collapsed six weeks before the U.S. filing. On December 5, 2025, it filed an assignment in bankruptcy under Canada’s Bankruptcy and Insolvency Act, with KSV Restructuring Inc. appointed trustee and Blake, Cassels & Graydon LLP as counsel.⁹

The Canadian trustee’s report described how the U.S. parent had, starting around mid-2024, used “non-cash intercompany funding mechanics” involving the Canadian subsidiary to help the U.S. entity meet borrowing-base requirements on its asset-based lending facility with Regions Bank. Those arrangements created a large intercompany receivable the trustee concluded was not recoverable, because Big Rock was not expected to repay Regions Bank in full.⁹

The Canadian entity’s book-value assets were about $65.1 million, though the trustee said realizable values would be “materially lower.” It owed $2.57 million in direct borrowings and $17.7 million in guaranteed debt, and proceeds were not expected to repay the secured lender in full.⁹ All 72 Canadian employees were terminated with accrued wages and vacation pay.⁶ SB360 Capital Partners and Hilco Global Capital Solutions were retained to liquidate Canadian inventory and collect receivables.²

Where the U.S. Case Stands

The Section 341 meeting of creditors was held on February 20, 2026, and the trustee filed an initial report on March 2. On March 4, the Bankruptcy Administrator filed a motion to dismiss the case, with responses due by March 30. The deadline for objecting to discharge was set for April 21, 2026.¹ As of June 2026, the case remained active, with the docket last updated on June 8, 2026, and no final orders or distribution notices on record.⁴

Open Water Brands and the Saltwater Portfolio

Several of Big Rock’s brands did not go down with the company. On November 10, 2025, roughly two months before the Chapter 7 filing, Open Water Brands, LLC was announced as a new entity formed by an investor group led by Big Rock Chairman Adrian Holler and Jack Baron, managing principal of Crystal Ridge Partners and a Big Rock board member.¹⁰

Open Water Brands consolidated ten saltwater fishing brands previously associated with Big Rock: Clarkspoon, Sea Striker, Star Rods, Got-Cha, Calcutta, Billfisher, Krok, Beach Runner, Contour, and Nungesser. Its managing partners are Graig Zurn, formerly Big Rock’s merchandise manager, and Christian Bedsworth, formerly its global sourcing manager.¹¹ The timing of the spinoff, announced before the Chapter 7 filing with Big Rock insiders at the helm, generated discussion among industry members at trade shows in late 2025.⁷

What It Means for Retailers

Big Rock served more than 20,000 retailers across the fishing, shooting, camping, taxidermy, and marine industries in the United States, Canada, the Caribbean, and eight other countries.³ The company’s website went dark and operations ceased entirely.⁸ Smaller fishing shops that relied on Big Rock as a primary wholesaler were already asking at the December 2025 Folsom Tackle Dealer Show who would fill the void.⁷ For retailers holding unpaid credits, outstanding orders, or returns with Big Rock, those amounts fall into the unsecured pool that is not expected to be paid.

1
Inforuptcy. Bankruptcy Case Big Rock Sports LLC
2
SGB Online. Big Rock Sports to Liquidate, Unsecured Debt Totals $83M
3
Fox Business. Major Firearms Distributor Serving Thousands of Retailers Files Bankruptcy
4
PACER Monitor. Big Rock Sports LLC
5
GunsAmerica. Big Rock Sports Files Bankruptcy
6
The Outdoor Wire. Big Rock Crumbles
7
Fishing Tackle Retailer. Big Rock Sports Files Bankruptcy
8
Angling International. Bankrupt Big Rock Sports Problems Were Open Secret in the Trade
9
Insolvency Insider. Canadian Sporting Goods Distributor Collapses Amid Group Liquidity Strain and US Affiliate Exposure
10
SGB Online. Saltwater Fishing Brands Combine Under New Entity
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Outdoor Sports Wire. Saltwater Fishing Brands Combine Under New Entity