Watchtower

Company Profile

Watchtower is a Texas-based, veteran-founded designer and manufacturer of premium firearms, suppressors, and tactical accessories. The Company’s product portfolio includes double-stack 1911 pistols and AR-style modern sporting rifles, manufactured in the United States with premium coatings and precision-machined components. Leveraging modern manufacturing techniques and a brand rooted in military values, Watchtower services both civilians and military and law enforcement agencies.

Situation

Despite being launched less than three years ago after acquiring a legacy business primarily focused on AR-style rifles, the Company has successfully designed and marketed three new handgun models and an improved AR-style rifle. Although Watchtower has achieved meaningful growth in recent history, ongoing legal disputes with its landlord disrupted operations and additional capital was required to support the Company’s increased demand.

In need of funding, the Company secured debtor-in-possession financing from CK Strategic Partners to effectuate a transaction via a Section 363 process and filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas (Fort Worth Division) in February 2025.  Watchtower ultimately entered into a stalking horse asset purchase agreement with CK Strategic Partners credit bidding their debt and assuming certain liabilities.

Solution

In order to restructure its balance sheet and help settle landlord disputes, the Company filed for Chapter 11 bankruptcy protection in February 2025. SSG was retained to conduct an expedited sale process that targeted a broad universe of potential strategic and financial acquirers. After significant marketing and discussion with numerous interested parties, Watchtower’s DIP lender, CK Strategic Partners, LLC, submitted a stalking horse credit bid that was determined to be the highest and best offer for substantially all the Company’s assets. SSG’s extensive Chapter 11 transaction experience and ability to reach a large universe of likely buyers ensured that the sale maximized value for stakeholders and preserved American manufacturing jobs.

Leveraging its deep expertise in life sciences, technology, and special situations, SSG generated significant market engagement and secured multiple indications of interest for the Company. The transaction with Sitero, completed through a court-supervised receivership, preserves Axiom’s technology platform, ensures continuity for its client base, and maximizes value for stakeholders. The outcome reflects SSG’s ability to deliver cross-border strategic solutions under complex and time-sensitive circumstances.