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One of the nation's most recognized firearms brands may go under today after it asked investors to take a 70 percent pay cut or accept a so-called "pre-packaged" bankruptcy.

The move loosely parallels recent efforts by the Federal Deposit Insurance Corporation and Justice Department to add greater regulatory scrutiny to companies that engage businesses they claim are at "high risk" for fraud.

Despite a slowdown in sales, most observers in the industry see this as a good-news-bad-news kind of scenario, especially in light of the general perception that, despite the bubble shrinkage, the current firearms industry is in overall good health.