http://finance.yahoo.com/news/gun-maker-colt-files-chapter-112818907.html
Yep, it was bound to happen.
Bob
Yep, it was bound to happen.
Bob
Colt Files Chapter 11
- Thread starter Voyager28
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coltle6920
Member
If Colt goes under and nobody steps in to bail them out my AR might be worth what I paid for it in fifty years.
Comrad
Member
They aren't going under but I do believe they will be importing cheap offshore goods in an effort to make a killing in the marketplace. Something that is in style these days. It's no longer acceptable to earn a modest profit, companies must make a killing no matter how cheap they need to produce poorly made products.
What a shame.
What a shame.
When you ignore your customer base and fail to produce a quality product that the public wants at prices they are willing to pay you will have problems. It happened to Detroit and Toyota and Nissan took a huge chunk of the market. I would hate to see them go, but they have only themselves to blame.
Well, their biggest customer, by far, is the U.S. Government, and it is there that the problem lies.
Glad I'm not one of the current unsecured bond holders.
Bob
I'm no business expert, but it seems to me that they did several things wrong. First they made the decision to basically ignore the civilian market. They then dropped their revolver line, except for the SAA. Now their 1911s are around $2K, including the resurrected 9mm versions. Competition is eating their lunch in the AR market. Their only concealed carry pistols are basically mini 1911s. Who wants to walk around with a cocked and locked .380 in their pocket? Their plan to bring back the famed 1903 in .32 ACP sounds cooler than cool until you get a look at the price tag, $2300. No vision. Smith and Ruger saw Glock and the CC revolver coming and did something about it. Colt did not.
It is sad to see this happen to one of the great firearm makers. I agree with gen3guy. I think they falied to adapt with the times. The come up of a lot of great AR companies knocked them down. Guess they thought they would always have the .mil market cornered.
gadwalloper
Member
Colt files Ch. 11
Gents,
I am a bankruptcy lawyer. Chapter 11 is not a death sentence, but a way to restructure the debts.
Don't count Colt out of business until we see the Plan.
Best , gadwalloper
Gents,
I am a bankruptcy lawyer. Chapter 11 is not a death sentence, but a way to restructure the debts.
Don't count Colt out of business until we see the Plan.
Best , gadwalloper
Well, as a legal matter you are correct. But, looking at their financials they are very much in doubt. In short strokes, they claim $500 Million debt and $500 Million in assets. In order for them to reorganize, get DIP financing, secure further reorganizational and operating funding (They need $250 Million)and divest some of their current unsecured debt the bond holders are going to have to agree to take it in the shorts. If they do not agree, company will be liquidated and creditors paid. Nothing left but the logo.
With a very weak civilian market line and a vanishing military market line there's really not much to reorganize. Their revolvers are discontinues, except DOA, their 1911 platform and AR platform has been so *******ized they can't give them away and their proprietary hold on the M4 market expired in 2013.
Bob
Bob
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