Colt Defense to file for chapter 11 bankruptcy protection by Monday

[ralph]

What a MisManaged Company. To think that some of the most popular arms produced for the US market currently are 1911's, AR15's and 45 Colt Peacemakers and that most of these aren't Colts is a shame. Seems they put most of their efforts into the Government Market.

They did. And this is what happens when you put all your eggs in Uncle Sugar's basket.. Still, this may not be the end for Colt.. They could reorganize after bankruptcy, move south, tell the union to go **** themselves and start over. This time around maybe listen to what the consumer wants.. And, while they're at it maybe hire a CEO who has a ****ing clue..

[Wake27]

I wouldn't pay for one of them, but I can appreciate their value ARs. I only care because I love my Colt Rail Gun and I would definitely pay for a 9mm one.

[Vandal]

Hopefully HK is watching this and realizes gov't contracts won't keep you afloat. I think the VP9 and VP40 are the beginnings of that awakening.

Colt has made some very poor choices over the years and it's now coming back to roost. Their support of Clinton's AWB didn't do them any favors and other than the 1911 and the M4 they haven't done much else. Yes, they have their old revolvers that aren't built anymore and still produce some SA revolvers. They are what happens when a company over-invests in gov't contracts thinking they will always be there then the cash dries up or they lose the contract with almost no back-up plan.

I'd hate to see a gun company go under but maybe this is Colt's chance to pull it's head out from it's ass and regroup.

[nova3930]

If they make the right decisions in bankruptcy they can come back stronger for sure. Most importantly they need new ownership, governance and officers who are more interested in making money selling firearms and reinvesting the profits in innovation than funneling the $ off to a hedge fund....

[CatSnipah]

It's what happens when you sit on your hands with no innovation for years.

Gotta keep your reputation fresh, and focusing on military only with no innovation will kill it.

[Digital_Damage]

I see this more as a move to purge the union and dissolve most of the pensions. They will relocate and come of bankruptcy in 2years max.

Edit:

I just read the filing and it has nothing to do with purging the Union. This is all about shelving the Debt so the company can be sold to Sciens Capital Management, it is clearly just a debt shell game. My guess is their are the same board members on both Asset companies. It think freedom group is heading to liquidate all firearm related companies from it portfolio.

[Outlander Systems]

They could do a lot to remedy this.

1) Move to a non-communist state.
2) Kick the union to the curb.
3) Make QUALITY entry-level options to leverage against competitors.
4) Bring back the Python.
5) Bring back the Anaconda.

It's pretty simple. I imagine the unionized labor force is responsible for a large portion of their pricing. I don't doubt that Colt can produce an extremely high-quality product.

If I took over as CEO, the first thing I would do, after relocating, would be to tool-up for a stripped-down, vanilla G.I. model that Colt could sell for ~$500.00. This would absolutely dominate the absolute dog shit 1911s hanging out at this price point. I would recoup our costs by creating true, drop-in upgrades. Call it the Series 2000. Part of the QA checks before leaving the factory would be to measure components to ensure tolerances with the host gun didn't require gunsmithing to install the upgraded components like beavertails, safeties, triggers, hammers, etc.

I would simply turn the Colt 1911 into a modular, AR15-style platform.

Buying a GI 1911 would be the equivalent of purchasing a standard, no-frills/no-bullshit AR15. It would be a solid performer. I would set up my QA/QC to ensure that upgraded parts would universally fit into the host gun without additional machining/gunsmithing. This would allow me to corner the market in 1911s, which is already my bread and butter, and make it so that when customers are ready to upgrade/accessorize/queer-up their gun, they can order directly from Colt, and have a truly plug-and-play solution. I would offer two frames. A smooth dust-cover and a 1913 Picatinny rail. I would hire someone like LAV or KH to Beta-Test and offer consulting services on the Series 2000. I would torture test the absolute **** out of these prior to sending to market. If the results of testing were favorable, I would broadcast it to the world. If it wasn't, I'd get the consultants to un-**** the gun. Rinse and repeat.

There is no reason Colt couldn't rebrand/enhance the 1911, while simultaneously bringing its pricing down to reality to wedge out the competition. Hell, build a 1911 that could actually meet or exceed the Modular Handgun System requirements in the RFI. Get accepted by the .mil as the new service sidearm, and watch your gun sell itself for the next 20 years.

Sadly,

NONE of this will happen. Colt will get scooped up by an asset holding company. A bean counter will come in to increase margins. Expect more plastic mainspring housings. The quality of Colt will decline, but the pricing will remain the same. Eventually, Colt will be a name, and nothing more. Like Remington, Marlin, and AAC.

[nova3930]

I see this more as a move to purge the union and dissolve most of the pensions. They will relocate and come of bankruptcy in 2years max.

Edit:

I just read the filing and it has nothing to do with purging the Union. This is all about shelving the Debt so the company can be sold to Sciens Capital Management, it is clearly just a debt shell game. My guess is their are the same board members on both Asset companies. It think freedom group is heading to liquidate all firearm related companies from it portfolio.

Then it looks like what I said above surely will not happen. This is all one big game to suck what little life remains of the company. My guess is they'll vampire out what value remains in the company and then do this all again as a liquidation in a few years, with the probability that Colt remains an ongoing concern being very low....

[Outlander Systems]

Their past few years of SHOT show releases have been laughable.

PREEEEEEEEE-SENTING, the TOP of the line, Colt submission for the largest Firearms Industry Tradeshow in the known universe:



Womp...waaaaaaa

[sevenhelmet]

^^^I've never been to SHOT show, is that what they actually submitted?

Sounds like it's a good thing there are other quality companies on the market (DD, BCM, etc.). If I had to guess, Colt might end up going the way of Marlin, where the old ones are like a fine wine, and the new ones are just plain laughable.