The Demise of Colt??

For those who say Colt made all of their money on government contracts and did not care if they sold to civilians.
Colt MFG and Colt Defense were 2 separate companies until last year.
So Colt Defense only always sold to the military and law enforcement.
Colt MFG has always only sold to the private sector.
They have merged last year with Colt Defense acquiring Colt MFG. Colt MFG is in the black while Colt Defense did suffer from FN copying their M4 and selling it cheaper to the government but they still pay Colt royalties.
Colt made ground when the US Marines MARSOC adopted the M45A1.
There are a lot of Colt haters and I cannot quite figure out why. Many say that they do not introduce new innovations and yet Glock builds the same thing over and over and people fall at their feet. I do like Glocks so there is that.
Ruger is at a 47% loss of profits this quarter as are a few other manufactures.
For the Colt haters, think of that old American company that has done a lot for this country. They build the finest production Government Model but I understand some do not want to pay for the quality of the materials used to build the gun or the workmanship.
As far as reintroducing the snake guns, to produce those revolvers today, at the level of quality people would expect they would be priced out of the market.
 
Merger with a more stable company and a restructuring will probably be the outcome.
It's not exactly an enticing investment.

Sure, the Colt trademark carries some weight, but they haven't innovated in a long time. As last year's dumping of Freedom Group by Cerberus indicates, mainstream investors aren't exactly chomping at the bit to invest in gun companies in the current climate.
 
Interesting that the new CEO and President for Taurus Holding Anthony Acitelli was Senior Vice President of Sales at Colt
I have found CS really drop at Taurus USA since they fired Mark Kresser which isn't saying too much.
 
I saw today that Colt was able to secure a $70 million line of credit which would allow them to make their $10 million loan payment.

Borrowing 70 to pay 10 - seems like they are digging the hole deeper.
 
The amount of a line of credit is what's available, not necessarily what's actually borrowed. Presumably they would start by borrowing just the $10M to make the current payment; even if they never borrowed the remaining $60M, its availability might, for example, reassure other creditors.
 
I'm hopeful, if not optimistic, that Colt will emerge from this and continue to produce quality firearms.
 
I am sure a company in SW Asia has the cash to buy the brand/TM.

I don't feel bad for them at all. Very conceited approach to almost every part of their business from my point of view.
 
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