Just curious what happens when a dealer voluntarily decides to close up, what happens to unsold inventory?  If they don't transfer to themselves or can't sell to another dealer?

What about dealer owned machine guns, post-86?

I would think a very small dealer would just transfer the title 1 guns to themselves and sell them off slowly. New guns have really crappy margins. So if they were to clearance them they would be losing either way. I’ve see. 3 in my area close all smaller dealers. And they sold a buncha stuff at cost and got rid of a lot of it and rest they transferred to themselves.

On the nfa stuff it’s a little more complicated. Some one will come along and answer that shortly lol

Yeah, I was really curious about NFA items.

Post 86 MGs are supposed to all be transferred out prior to their SOT lapsing in June, or prior to surrendering their FFL. If they screw that up (like an old boss did once), the result I observed was that ATF made him renew his SOT (and expedited the process), so he could sell/transfer the remaining MGs. He had not surrendered his FFL at that time. The corp held it at least until the following June, even though the business was closed. He sold his M60, Stoner 63, and Swedish K to other SOTs on the internet. Not sure ATF is always that lenient.

Worst case is that the post-86 samples would be forfeit to the BATFE, if not voluntarily surrendered, destroyed or properly disposed of to other qualified recipients.

Pre-86 or transferrables would simply remain the property of the person or business entity which held the FFL. If it was an entity like a corp, llc or partnership, then the guns would have to be disposed of (tax-paid) to qualified recipients if/when the entity was dissolved or liquidated.

I am supposing the same with ailencers, SBRs, etc.?

Nope - only post-86 machineguns are regulated so that one has to be an active FFL/SOT to retain them. Anything else is a keeper for the person or business entity which owned them before giving up the FFL/SOT.

Once the person or entity is no longer a SOT, though, it's $200 a pop to transfer them (except AOWs), even to another dealer, so they'll have greatly reduced sale or resale value if the person or entity hangs onto them not intending to keep and use them.