Posted on 06/15/2015 7:31:48 AM PDT by Enlightened1
Gun maker Colt Defense LLC plans to file for chapter 11 bankruptcy protection by Monday, according to people familiar with the matter, amid business and accounting troubles.
The company has secured financing to continue operating while in bankruptcy and expects to remain in business after the restructuring, the people said.
The West Hartford, Conn.-based company, with a legacy dating to 17th century New England, developed a pistol it calls “the gun that won the West” and enjoyed a lucrative stretch in the late 1990s and early 2000s as the U.S. military’s sole supplier of the M4 line of firearms widely used by front-line troops.
But Colt has struggled in recent years with a slowdown in rifle sales and its 2013 loss of a key contract to supply the U.S. Army with the M4. The company has had accounting problems that caused it to revise prior years’ reported financial results and miss a creditor’s initial filing deadline for an annual report, according to regulatory filings.
Colt plans to try to reduce its debt burden via a court-supervised auction of its business, to generate proceeds to repay some of its lenders, the people familiar with the plans said.
(Excerpt) Read more at marketwatch.com ...
M-16 and M1911 variants.
Same old stuff in a very competitive market.
More American manufacturing going down the tubes...such a tradition! If you can’t get a Colt, US made, then where are we heading?
They are very pricy. I think a lot of people cant afford to buy a Colt. They should have moved down south to get rid of Union punishment
After Sandy Hook and CT's AWB, Colt would have been smart to pull out of CT and head south.
PFL
$2095?
Yes.
$250.00 in material
$250.00 in labor
$250.00 in CNC time/use
$250.00 in assembly, boxing/marketing/ ATF paperwork.
$1095.00 to the union.
Should have kept the Python alive.
Ridiculous.
Definitely.
Even though the cylinder rotated the wrong way, it’s a hell of a pistol. The Anaconda wasn’t bad, either.
it is not that people can not afford to pay,
people do not want to pay for stupid.
Colt has definitely priced themselves out of the market. I was in the market for a 1911 (always wanted one) and Colt was WAAAAYYYYY over my budget.
I bought the Remington 1911R1 for just over $700 out the door. I’ve put a couple thousand rounds through it with no issues.
Oh, and it came with a rebate.....200 rounds of Remington hollow points!!!
I own numerous Colt firearms and have dealt with their customer service on more than one occasion. IMO their problem was/is that they relied upon the military for their profits and could care less about civilians. My experiences with their rude and incompetent customer service/warranty department are not unique. It’s how they roll. Now they’re paying the price.
Had an Anaconda.
Bingo! They adopted the H und K business model.
Because we’re Colt and we hate you.
Remember their large pin AR receivers?
I recently was in the market for a compact 1911, and chose to get a Kimber over a Colt.
Colt, in general, abandoned the civilian market many years ago.
I would love to have a Colt 1911, but ended up getting a Rock Island Armory for about 1/3 of the price.
I’m sure left-wing extremist law suits had nothing to do with this.
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