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Colt Defense LLC filed for chapter 11 bankruptcy protection Sunday, warning its business is in a fragile state and it needs a quick sale to survive.
The bankruptcy filing was expected for the famed gun maker, which failed to win the support of bondholders for a debt-reshaping agreement. Colt had said if it couldn’t reach a deal, it would put itself up for sale in bankruptcy
Colt Defense, is the military grade side of the business.
Colt doesn't make drones, (the new warfare) and their defense side of the business is way down, with less military spending on small arms.
Springfield Arms has had the bulk of the military contract for small arms. The 30.06 round, was the round of choice for the US military for almost a decade.
Well, you have cheaper innovative companies like Kel Tec who can't make enough firearms to keep buyers happy. They literally refuse to expand not wanting to go into debt and supply cannot nearly keep up with demand.
But I have a few thoughts. I do remember reading that Obama was pushing the banking industry to not lend money to firearms manufacturers. Whatever became of that I don't know, especially since Obama turned out to be the firearms industry bestest buddy. Then too, Cerberus Capital Management( what a name) was buying up gun and ammo manufacturers left and right and they're invested in by both left( Soros) and right wingers( Dan Quayle). Maybe somebody's decided to make Colt ripe for acquisition and ran the company into the ground( only on paper possibly) and they want a steal of a deal.
I never liked AR 15s( or AK 47s either) so its no loss either way. And Colt's firearms were definitely high end pricey.
FN (Fabrique National) got the contract for the M4 carbine in '13 or so. I think they had the M16 contract for some time before that. Keeping the M4 with Colt until then was a bone thrown to Colt Defense to keep them alive.
FN (Fabrique National) got the contract for the M4 carbine in '13 or so. I think they had the M16 contract for some time before that. Keeping the M4 with Colt until then was a bone thrown to Colt Defense to keep them alive.
FN is also the parent company of Browning and has a licensing agreement to produce Winchester guns.
Cerebus owns Remington, which recently acquired Marlin and H&R.
Colt may very well have moved to Texas for both political and financial reasons. Beretta moved its USA production from Maryland to Tennessee. The stated reasons were the political atmosphere concerning guns (recent "common sense" changes which made a couple of the guns the company made in the state illegal) and the general business climate. Managers I know are saying that moving the administrative headquarters from Maryland to Virginia will happen in the next few years.
Colt Defense LLC filed for chapter 11 bankruptcy protection Sunday, warning its business is in a fragile state and it needs a quick sale to survive.
The bankruptcy filing was expected for the famed gun maker, which failed to win the support of bondholders for a debt-reshaping agreement. Colt had said if it couldn’t reach a deal, it would put itself up for sale in bankruptcy
I don't know much about gun sales. But gun ownership is declining.
Gun ownership is now back at the low point it reached in 2010: Only 32 percent of Americans own a firearm or live with someone who does, compared with about half the population in the late 1970s and early 1980s, according to the 2014 General Social Survey (GSS). The survey is a project of independent research organization NORC at the University of Chicago, with principal funding from the National Science Foundation.
The poll also found that 22 percent of Americans personally own a firearm, down from a high of 31 percent in 1985. The percentage of men who own a firearm is down from 50 percent in 1980 to 35 percent in 2014, while the number of women who own a gun has remained relatively steady since 1980, coming in at 12 percent in 2014.
So the Colt Company has gone bankrupt. It seems to me the company was being played with by the financiers with a lot of lobbying but without any real investment in technology. Concentration on the finances instead of the product will always destroy a company.
Fortunately there will always be a lot of 1911 .45 Colts available on the used market. Most will shoot as well as needed and the prices will be reasonable. Same applies to all the used Single Action Army revolvers made by just about everyone.
PS: Those statistics indicate a huge market waiting to be served. Over of 75% of the American population is a huge number of potential customers. All we need is a cheap simple weapon that can be used to defend a person or a home. I think it is called a Coach Gun. That is a short barreled 12 or 16 gauge shotgun.
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