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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
It's to be expected that cheaper firearms, like cheaper cars, will provide competition to old time domestic manufacturers.
Colt's problems seem to hinge on it's previous elitist attitude and obsession with government contracts INSTEAD of innovating for individual consumer market. You can only ride on the 1911 derivatives for just so long before people start wondering why they're paying $400 dollars more for a .45acp than the competition who are fielding weapons that also deliver accuracy and reliability. Not everyone desires an heirloom as a weapon.
Comments on blog sites are frequently centered around lack of new products being available in gun stores and people desiring a weapon who contact the company directly getting the: "we're sorry, but we are not taking orders at this time".
Those things all taken in concert, would spell the demise of any company were they to become the norm rather than an anomaly. A positive name recognition will sustain sales for just so long until that name garners negative connotations associated with it, then the free fall will be spectacular.
So I guess moving to Texas couldn't save the company from bankruptcy. I remember when they said they are moving out of CT because of CT's "anti-gun culture", I think it had to do with $$$ the entire time; the "We're moving to TX because it has a good gun culture there" was a PR statement for the duped Right, while the balance sheets didn't look so good anymore. I bet that was the real motivation
Without pulling the actual filing, my read on this is Colt Defense LLC is a subsidiary of Colt Manufacturing Company. That subsidiary seems to have had a troubled financing history of late.
Hence, what part of the overall Colt company gets sold off and what remains isn't clear to me...
It's to be expected that cheaper firearms, like cheaper cars, will provide competition to old time domestic manufacturers.
Colt's problems seem to hinge on it's previous elitist attitude and obsession with government contracts INSTEAD of innovating for individual consumer market. You can only ride on the 1911 derivatives for just so long before people start wondering why they're paying $400 dollars more for a .45acp than the competition who are fielding weapons that also deliver accuracy and reliability. Not everyone desires an heirloom as a weapon.
Comments on blog sites are frequently centered around lack of new products being available in gun stores and people desiring a weapon who contact the company directly getting the: "we're sorry, but we are not taking orders at this time".
Those things all taken in concert, would spell the demise of any company were they to become the norm rather than an anomaly. A positive name recognition will sustain sales for just so long until that name garners negative connotations associated with it, then the free fall will be spectacular.
Yes, I guess they are simply being eliminated by the competition.
Without pulling the actual filing, my read on this is Colt Defense LLC is a subsidiary of Colt Manufacturing Company. That subsidiary seems to have had a troubled financing history of late.
Hence, what part of the overall Colt company gets sold off and what remains isn't clear to me...
It is not a subsidiary of Colt Manufacturing Company. They split in 2002. Colt Defense LLC supplies the military and LE, while Colt Manufacturing sells to the private sector.
Interestingly it seems they re-united two years ago. So, I agree that it is hard to see what is being sold. Maybe they split again, and Colt Defense LLC filed for Chapter 11 and is looking for a buyer.
So I guess moving to Texas couldn't save the company from bankruptcy. I remember when they said they are moving out of CT because of CT's "anti-gun culture", I think it had to do with $$$ the entire time; the "We're moving to TX because it has a good gun culture there" was a PR statement for the duped Right, while the balance sheets didn't look so good anymore. I bet that was the real motivation
I agree. I recall the thread here on CD on that issue.
I also read the other day that Colt was in trouble, as indicated by another poster above, because they simply would not 'keep up with the times', in competing with other companies offering guns with good fire-power and a lower weight.
It's to be expected that cheaper firearms, like cheaper cars, will provide competition to old time domestic manufacturers.
Colt's problems seem to hinge on it's previous elitist attitude and obsession with government contracts INSTEAD of innovating for individual consumer market. You can only ride on the 1911 derivatives for just so long before people start wondering why they're paying $400 dollars more for a .45acp than the competition who are fielding weapons that also deliver accuracy and reliability. Not everyone desires an heirloom as a weapon.
Comments on blog sites are frequently centered around lack of new products being available in gun stores and people desiring a weapon who contact the company directly getting the: "we're sorry, but we are not taking orders at this time".
Those things all taken in concert, would spell the demise of any company were they to become the norm rather than an anomaly. A positive name recognition will sustain sales for just so long until that name garners negative connotations associated with it, then the free fall will be spectacular.
That and demanding over a $1000 for a Single Action Army revolver. It is the simplest of all guns designed. The quality of the Colt M4 is inferior to that of Bushmaster which is $500 to $600 cheaper. Colts marketing practices have always left me scratching my head.
It seems they lost the M4 contract with the military.
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