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Colt Chapter 11

1876 Views 27 Replies 17 Participants Last post by  fnfalman
This is the updated info. They needed to go with dedicated series 70!!!! It ruined credibility. IMHO

Iconic American gun-maker Colt Defense has filed for bankruptcy protection.

The company says in a statement that its Chapter 11 filing late Sunday in U.S. Bankruptcy Court for the District of Delaware will allow for a faster sale of business operations in the U.S. and Canada.

The Wall Street Journal reports that the filing was expected because Colt "failed to win the support of bondholders for a debt reshaping agreement." It adds: "Colt plans to try to reduce its $355 million debt burden via a court-supervised auction of its business, to generate proceeds to repay some of its lenders."

Colt says that Sciens Capital Management has proposed to buy "all of Colt's assets and assume secured liabilities and all liabilities related to existing agreements with employees, customers, vendors, and trade creditors."

The process is expected to be completed in 60 to 90 days. Colt says its existing secured lenders have agreed to provide $20 million to allow for continuation of operations.

It's not the first time Colt has seen financial trouble.

Sam Colt opened a firearms plant in 1836, but sales weren't great and it closed six years later. In 1855, Colt founded Colt's Patent Fire Arms Manufacturing Co., which has manufactured American guns ever since.

Bloomberg says of Colt's more recent travails:

"Among other failings, the severed halves of Colt somehow missed the post-2008 'Obama surge' as much as other U.S. gun manufacturers. Whipped up by NRA warnings that the Democratic president intended to toughen gun control, consumers cleared gun store shelves of ammunition and weapons. Better-prepared manufacturers such as Glock saw sales rise sharply. ... Colt's Manufacturing, for its part, offered only a limited selection of the handguns so much in demand."

Business Insider reports that Colt hit another rough patch when a contract with the U.S. military ended in 2013.

The company says President and CEO Dennis Veilleux will remain in place during the bankruptcy process.
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Isn't the President and CEO ultimately responsible for this mess? Why in the world keep him on?
I was asking myself the same question.
 

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They've greedily screwed themselves out of business. They apparently never saw the military contract ending (although the rest of us did) and made feeble attempts to keep up with modern 1911's, especially as Kimber was taking over the market. Why should, except for nostalgic values, anyone even want today's Colt? I'm no Colt hater, I have several and even chose two of them for custom builds from a top pistolsmith. I just hate to see any business so corrupt to dump their debts on the people who trusted them with their investments. And if it's true that the same company dumps those debts then buys the company back I will curse them forever.
 

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Its inconceivable to me that Colt's missed out on the Obama follies, except of course considering that they INTENTIONALLY chose to do so! Union's SUCK America, Colt's didn't proceed ahead with the real market because they are an operation of the left!
 

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While I hate to see Colt go under the deserve to be out of business.

The biggest sellers of the last 20 years were originally Colt. The Ar-15 market was theirs and they lost it because they were either to expensive or unavailable ,they are cheaper now but too late. The small .380 was started by Colt first with the 1908, then the Govt.380 and finally the great Mustang Pocketlight which they stopped making and allowed Sig To make. Now how many companies make 1911's better and cheaper than Colt? They killed themselves ,the market was there for them to take and they didn't want it.
 

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Sciens Capital is one of the ones that plundered Colt.
Now they want to sell to themselves, wipe the debt, and leave the bondholders holding a flaming sack of ****.
 

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Knew this was on the verge of happening...will be interesting to see how this all works out. :popcorn:

Somehow I don't think that the $1k+ 1903 reproductions are going to dig them out if this hole.
 
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· Deo Vindice
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Won't get too deep in the weeds on this one and play the blame game.

Despite the bankruptcy...no matter how it plays out, someone will end up with the Colt name. What happens after that...who knows? Good things I hope.
 

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You're right, another gun manufacturer will buy them if the crooks that already own them don't after bankruptcy. How would you like your prize Pony manufactured in the Philippines or South America? What an embarrassment.
 
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