Gunwerks, the Cody firearm manufacture specializing in long-range rifles, is being sued for $2.78 million by Wells Fargo for unpaid loans and interest.

The bank filed a motion in Wyoming District Court on Wednesday in Casper. The bank is seeking to take possession of the company's collateral for failure to pay a $2.4 million operating loan and interest.

In the motion Wells Fargo also states Gunwerks most recent financial statement provided to the bank in February shows company owes third parties in excess of $622,000.00 which is more than 60 days past due. Gunwerk's financial officer advised Wells Fargo that the Borrower stopped paying sales tax in the third quarter of 2018, and the amount due was approximately $365,000.

Forward Cody recently constructed a new manufacturing facility for Gunwerks with $6 million of state grants and funds.

(9) comments

BruceE

Mr. Gunrunner - do you really not think these businesses are carefully vetted at the local and state levels as SOP? Come on. Of course they are. But Economic Development is one of the toughest undertakings there is and one should not get involved in it if you have no stomach for risk. Because that’s how it goes statewide and nationwide. I doubt those success figures are any better than 1 in 5. You pays your money and takes your chances. And you paint with an equally unrealistic and broad brush when you criticize Forward Cody board members. Have you not lived here long enough to personally know that these are some of the hardest-working, most experienced, successful business people in Cody Country? Who would you suggest instead? Yourself? That’d be great - you should join up and expect to gain quite an education in Economic Development, reality and risk. - Bruce McCormack

Gunrunner Auctions

Yet another total failure for the score card of Forward Cody.... One needs only to look at the board members of Forward Cody and understand why. They need to explain why their "choices" to involve our state taxpayer funds for these grants and loans are valid and they must answer for the latest poor attempt at propping up a Cody business. This is a concern for the Secretary of State, Treasurer and the Governor of Wyoming as well who hear these proposals from Forward Cody and must vet them. There's a big lesson here as a bad pattern is being observed. We're talking millions and millions of dollars. The zeal to help Cody grow industrially must be weighed against the company's potential as well as how it operates the business.

When a business is considered, the Forward Cody board members must consult experts in any given field to see just how the considered business could be sustained. No way was this done for Cody Labs or Gunwerks. New board members with better experience and expertise need to be appointed. A new head of Forward Cody is needed. Pronto on both. These recent "green lights" on failed business plans are a blight on Cody.

And guess who loses out BIG TIME? The taxpayers....

Devildog307

Yet another failed attempt by giving money to a business with rocky financial situations. I’m sure someone made out like a bandit on that deal.

Fox Blue River

Another business about to go under, our poor town.

Johnny Tremain

Yet again another reason for the State not to involve our money in private business, ForwardCody has no business giving out our money, thank you ; Klessens and Coe

myWY

Forward Cody? Maybe the Enterprise could feature an article explaining the criteria used for supporting these "forward" businesses.

Olive

I ask how to you get vetted get state grant and owe

State sales tax? You do not get this far upside down in 12 months without improper vetting.

HRS

Klessens sure has a good eye for businesses that are worth investing in. Another winner James! He knows how to pick em doesn't he?

Olive

You can owe the state 5 quarters of sale tax and get a grant. Please have Forward Cody vet for me and sign me up

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