Roanoke, VA – Rev-Arms, a Danville gun dealer also known as Revolution Arms, has closed up shop, allegedly leaving paying customers out thousands of dollars. According to the Danville Police Department and the Danville Chamber of Commerce, the business is no longer operating in the area. The website, www.rev-arms.com is no longer active, mail has been returned, and the phones have been disconnected.
BBB Serving Western VA has received 10 complaints involving Rev-Arms in the past three years, nine since October of 2016. The F-Rated company has failed to respond to nine complaints. Customers allege the company took advance payments, failed to deliver purchased products, and will not respond to customer inquiries. BBB complaints allege a total of over $12,000 in advance payments for goods that were never delivered.
One complaint stated: “On September 7th 2016 I sent Rev-Arms $2,601 for two rifles and a barrel to be made and shipped to me in GA. After numerous excuses why they could not ship the product, the owner made a final commitment to have everything to me by December 17th. Since then, they will not answer any calls, they will not return any messages left on their voice mail, they will not respond to emails or texts,” said one customer from Georgia. “I paid for the product in advance and was initially told the product would arrive in 2 - 4 weeks. It's now been four months, Rev-Arms has my money and I have nothing to show for it.”
BBB files indicate that this business has a pattern of complaints concerning non-delivery of products ordered. On January 5, 2017, BBB sent a certified letter requesting the company address the pattern of complaints. The letter was returned as unclaimed on February 8, 2017.
If you have a complaint against the company, you may file with the Virginia Attorney General's office at http://www.oag.state.va.us. Customers in these situations can also file complaints with the BBB (www.bbb.org) and/or the FTC at www.ftc.gov. Depending upon the amount of the claim, small claims court is also an option. Additionally, consumers are advised to keep a detailed journal of your efforts including contact names and dates. This journal could prove to be valuable in your search for a resolution.
BBB advice on what to do if a company goes out of business unexpectedly:
When a retailer closes their doors, customers are often left confused and wondering what will happen to purchases they’ve paid for but haven’t received. The same applies in situations when warranties or unused gift cards are involved.
Attempt to determine if the company has filed bankruptcy.
If possible, ask the company directly if they have filed. If not possible, the Securities and Exchange Commission (SEC) and the Bankruptcy Court keep records online and in paper files. Those records can be accessed online at sec.gov or in person at the SEC headquarters in Washington, DC. The Bankruptcy Court in the state where the company is incorporated or has its main place of business will also have those records.
If you want to review court filings, you can access them through the PACER system, which is a web-based index of filings in federal courts. To do so, you need to set up an account. Please note that PACER charges a nominal fee for access to court filings.
If a company closes, but hasn’t officially filed bankruptcy.
First, send the company a letter in case their mail is being forwarded. If able, physically go to their location to see if they left a message on the door for customers. Ask neighboring businesses if they have any information. Try to reach the owner. If you have merchandise in the store, contact the landlord to see if you can be given access to the company’s facility. As a last resort, contact law enforcement.
The validity of any outstanding warranty varies depending on the facts. If a retailer goes out of business, the consumer may be able to rely on the manufacturer’s warranty. If a manufacturer goes out of business, the consumer may be able to rely on a retailer’s warranty. Many extended warranties and service plans are provided and administered by third parties and are typically not affected by a retailer or manufacturer closing its doors.
Unused gift cards.
Under Chapter 7 bankruptcy law, the gift card holder must file a claim through the courts. Under Chapter 11 bankruptcy law, courts will decide if the business must honor gift cards. To avoid problems, the BBB advises that consumers redeem gift cards as soon as possible.
Chapter 7 bankruptcies.
Under Chapter 7 bankruptcy law, the money gained from selling the company’s assets goes first to back taxes, secured creditors and employees. That usually depletes available assets. If any assets are left over, they are divided among unsecured creditors, including customers who didn’t receive services or goods already paid for.
Chapter 11 bankruptcies.
A Chapter 11 bankruptcy allows the company to continue operations while it reorganizes for future stability. If a company files for Chapter 11 protection, they will often still honor gift cards, fulfill services and deliver on goods. Unfortunately, some Chapter 11 bankruptcies are unsuccessful and convert into Chapter 7, which leads to closure and complete liquidation. At that point, the chances for the consumer to receive any compensation are greatly diminished.
Dispute the charge if you paid by credit card.
Customers who paid with credit cards may be able to dispute the charge with their credit card company to get their money back. Others who paid by check or cash, will need to file a claim with the bankruptcy court administering the process. A creditor must file a proof of claim within 90 days after the first date set for the meeting of creditors. Visit www.uscourts.gov for more information.
If you need more information, contact the BBB at (540) 342-3455 or (800) 533-5501. You can also visit www.bbb.org. Follow us on Twitter at twitter.com/BBBWesternVA and on Facebook at facebook.com/BBBWesternVA