Colt Defense, the storied firearms maker, announced late Sunday that it has filed for a Chapter 11 bankruptcy reorganization..
Colt said that in making the filing in U.S. Bankruptcy Court in Delaware, it hopes the process will allow it to quickly sell its business operations in the U.S and Canada. A firm, Sciens Capital Management, plans to buy virtually all of Colt's assets.
"The plan we are announcing and have filed today will allow Colt to restructure its balance sheet while meeting all of its obligations to customers, vendors, suppliers and employees and providing for maximum continuity in the Company's current and future business operations," said Keith Maib, Chief Restructuring Officer of Colt Defense, in a statement.
Because of the filing, the sale should go through without all the debt that otherwise would have been associated with it.
The plan is to keep Colt healthy and vigorous, continuing to make guns in West Hartford, Conn.
Colt has produced a lot of famous weapons over the years. Pistols such as the Colt .45 became legendary.
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5 comments:
Obama's Plan is working...
Colt's been in the crapper for a few decades. They make TWO recognizable firearms, the M4 and the 1911. They've fallen to the 25th largest firearm manufacturer in the USA...can you name the other 24 ahead of them? They stood by while literally a couple dozen companies passed them in quality control and precision machining.
Colt has been a joke for a long time; run "proudly" by the UAW lol
Colt needs young blood to bring fresh ideas. A new personal defense weapon is needed. One that is excellent in a CQB situation (short), is easy to use without too many fine motor skills requirements in high stress situations, is accurate, has easy target acquisition, conceals easily, and is reliable - using ammo that is easy to acquire and enhances the aforementioned characteristics.
They need to be realistic about their pricing.
colt died long ago. They have been living off the military for years. Others stepped in and made new versions of the M4. Colt lost there edge as others innovated. HK, SIG, LWRC, LMT to name a few. I do not mind paying more for innovation and quality but just because it has the colt name on it should not make it more expensive.
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