Blueline Tactical and Police Supply LLC, an Elmsford gun store, filed for “emergency” bankruptcy protection last month on the day before an eviction proceeding was to be held.
Blueline declared $170,379 in assets and $4.1 million in liabilities, in a Chapter 11 petition filed April 13 in U.S. Bankruptcy Court, White Plains.
The gun store is seeking financing, founder Benjamin Rosenshine states in an April 27 affidavit, to “obtain some breathing room while it formulates and puts in place its plan of reorganization.”
Rosenshine, of Pleasantville, founded Blueline in 2010. The store at 444 Saw Mill River Road, Elmsford, sells pistols, long guns and paraphernalia. It has a shooting range and offers training programs. Among its customers, he says, are employees of the U.S. Secret Service, IRS, state attorney general, and various local, state and federal law enforcement agencies.
Last year, when a spike in national gun sales was attributed to the Covid-19 pandemic, Blueline booked nearly $3 million in revenue, three times more than the previous year, according to a financial affairs statement.
But the business fell behind on rent by $315,000 and an eviction hearing was to be held on April 14 in Greenburgh Town Court. Faced with no viable rental option, Blueline filed for bankruptcy and a chance to reorganize.
Rosenshine owns 51.7% of Blueline shares. Investors include Argo Partners, Mount Kisco, 40.3%; Diamond Properties, Mount Kisco, 2%; Terry Geller, Hasting-on-Hudson, 1.95%; Anthony F. Miscrimarra Jr., Rye Brook, 1.95%; and Seth Neubardt, Rye, 1.95%.
Most of Blueline’s debt, nearly $3.9 million, is claimed by investors, including $3.1 million to Argo Partners, $470,382 to Diamond Properties and affiliates for rent and a construction loan; and $100,000 each to the individual investors.
Rosenshine classified the Argo, Diamond  and landlord debts as disputed. He states, for example, that there is an oral agreement to pay $10,000 a month in rent instead of the $12,400 Blueline has been charged.
Assets include a $42,296 Chevrolet Tahoe, $40,000 in ammunition and other inventory, $30,700 in bank accounts, three machine guns worth $33,000 and rental guns worth $6,000.
Rosenshine says Blueline has never before filed for bankruptcy.
In 2017, Dawn D. Rosenshine, doing business as Blueline Tactical & Police Supply, filed for Chapter 7 bankruptcy liquidation, declaring $500,000 to $1 million in assets and liabilities. The case was dismissed two months later for failure to pay the filing fee.
In 2020, Benjamin Rosenshine filed for personal Chapter 13 bankruptcy, declaring $377,060 in assets and $1,058,864 in liabilities, and listing Dawn Rosenshine as codebtor. He voluntarily withdrew the case three months later.
Blueline is represented by Harrison attorney H. Bruce Bronson Jr.
