Posted on 06/13/2015 10:37:21 AM PDT by Jan_Sobieski
Colt, the iconic American gunmaker, could be bankrupt within days. The company, that has been making guns for 160 years, has been struggling financially and missed a $10.9 million interest payment on its debt in mid-May.
Colt admitted, in a regulatory filing, that its failure to make that interest payment raises "substantial doubt about the company's ability to continue as a going concern." Colt also said it "may seek relief under the bankruptcy code." The company has a 30-day grace period until June 14 to make the interest payment after which it has to find a way to restructure the debt with its bondholders.
Kevin Starke, gun industry analyst for CRT, said that Colt had already signed a debt restructuring agreement with its bank, but a group of bondholders rejected it that would have dropped the bonds to 45% of their face value. Starke said that bondholders are reluctant to agree to any pact that forces them to take a loss. That's because they might have a better chance of recovering all or most of their money in bankruptcy, assuming that Colt gets sold for enough money to cover the $250 million worth of bonds and another $102 million in additional debt.
That could be possible if a buyer emerges from among its larger gunmaking rivals such as Smith & Wesson (SWHC) or Sturm Ruger (RGR). Colt's status in the gun industry and its role in American history cannot be overstated. The West Hartford manufacturer established by Sam Colt has been the most famous gunmaker in America since the 1840s, when the Texas Rangers adopted its revolver during their Wild West wars with Native Americans...
(Excerpt) Read more at money.cnn.com ...
Colts obvious solution is to start making their snake guns again. Make them quality and available. Screw the collectors and their artificial market prices make it where the average Joe can have an anaconda or a python again. Do a tie in with The walking Dead for marketing (I think Rick carries a python). JMHO.
I was in the plant doing a job a couple weeks ago [hope my check won’t bounce] and was admiring all the new machining they had installed also the plant looks much cleaner than before. They really screwed the pooch when they got into bed with the anti gun nuts and our head nut Dannel Malloy!
I believe the company already moved part of its operations out of CT last year, but the rest of the operation needs to follow. Unfortunately, it looks like that'll be done post-bankruptcy. I just hope Colt doesn't end up as another Cerberus acquisition, rolled into the Remington production line alongside DPMS and Bushmaster.
My own economic situation since starting my own coffee shoppe is not much better than Colt's. I had to sell this Detective Special as I did a Colt Lawman MkIII to raise a bit of dough. But I'm not selling my old Colt Police Positive or my 22 Buntline or my Colt Combat Elite 1911.
“I wonder how much of their financial woes is due to labor costs?”
From what I have read over the years a lot. They missed the opportunity to move out of there and now they cannot not even afford to do that. Someone will pick up the company at a fire sale price and move it to a more friendly state and away from the unions.
Very very nice. You have to admire a woman who can handle a .45 with skill and aplomb. Largest caliber the missus can handle is .40. So we’re on point with matching SIG 229s
They were supposed to be making a move to somewhere in central Florida. I think they even took some county redevelopment money.
A right-to-work and gun friendly state would work. Move the gun that won the west into the west. (North Dakota is business friendly)
Colt deserves to go bankrupt.
They hung their star on Government contracts and nothing else.
They do not make a 22. The single most popular gun out there, and they don’t make one.
Wildly popular for hiking, plinking, training, hunting, and they don’t make one.
They do not make a revolver except for high end single actions that are not used for defense.
They have been dragged kicking and screaming into making one single action 380, and they barely produce it.
They do not make a 9mm except in a 1911.
They could sell every Python they could build, but refuse to do it.
I would like to see a sane argument for them to not be bankrupt.
Their woes are due to their product line and their refusal to move out of New England, and their refusal to walk away from the government teat.
No 38, no 22, no revolver besides a SAA, no Python, no 9mm except 1911. No effort whatsoever to remain relevant.
Its as though Ford only sold 1966 pickups, for 38,000 each, and was amazed that they were having a hard time making ends meet.
They're close but not the same.
Hold onto any of them you can.
Look at Ruger, everything they have is backordered and they are producing as fast as they can.
Same for Smith, same for Remington and Glock.
Same for freaking KelTec for Gods sake.
This is a Colt management problem.
Colt got complacent a long time ago, like Glock recently.
But finally—see the Glock Gen 4 G41 .45: slim slide, 4 replaceable backstraps, 13+1 capacity, overall size virtually the same as a 1911 but the Glock has a slightly longer sight radius. See July 2015 Guns for article.
A Glock 19 is prolly the only Austrian I’ll ever own since I like my CZ 97B. I was spoiled by a Browning HI-power first-gun grip and a 1911 to me is holding an axe handle.
Don’t get mad y’all, but it’s only eleven years away from being 19th century technology.
On the plus side, it was designed to shoot hopped-up Filipino muzzies ....
Yeah, too bad. New England statists killed another iconic industry.
SouthNarc: That a stock Commander?
Me: Yeah.
SouthNarc: It runs, man.
I did a pencil rubbing of the markings on my Colt M16A2 on Parris Island. Safe, Semi, Burst. Serial number 6137326.
I'm now a Glock and J-Frame guy and have no 1911s, but it's too bad what Colt has done to themselves. Python, most beautiful handgun ever. Only rivaled in looks by the Kimber Eclipse.
As a consumer, that pretty much sums it up alright. Aside from AR-15s, which everyone builds these days, Colt’s biggest problem is that they apparently have no clue where the market actually is and what people want. The simple fact that their competitors are thriving in this market is a not so subtle hint that Colt is doing it wrong.
I prefer Ruger or Beretta.
All they have to do is start making those great .357 revolvers and 1911’s again.
I think that is available to anyone as the patent ran out.
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