Colt Defense, the famous American gun manufacturer, has officially filed for Chapter 11 bankruptcy protection.

The Connecticut-based company announced the move on Sunday. Colt, which has supplied the US military, law enforcement officers, and the gun-owning public with high-quality firearms for over a century (albeit under different names), aims to rapidly sell its assets in the United States and Canada.

“Colt’s current sponsor, Sciens Capital Management LLC (‘Sciens’), has agreed to act as a ‘stalking horse bidder’ and has proposed to purchase substantially all of Colt’s assets and assume secured liabilities and all liabilities related to existing agreements with employees, customers, vendors, and trade creditors,” stated a press release put out by the company detailing the filing.

The announcement of the bankruptcy is a blunt acknowledgment that Colt can no longer afford to pay its creditors, and must now undergo significant financial and corporate restructuring. The company’s money woes first made the news in late 2014, when it dodged a potential default and then announced that it may not be able to make a $10.9 million loan repayment later in 2015.

The company stated that the bankruptcy process, which it predicts will last 60 to 90 days, should not impact “customers, vendors, suppliers, and employees.”

“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,” stated Keith Maib, Colt Defense’s chief restructuring officer.

When word of the company’s financial problems made the news, many speculated as to whether Colt would survive 2015. Though the manufacturer supplied select-fire versions of the AR-15 rifle to the United States Armed Forces for quite some time, it began losing US military market share to companies like FN Herstal in the early 1990s. Increasing competition in the commercial firearms market over the past several years also hurt Colt, as hundreds of companies began offering their own cheaper versions of 1911 pistols and semiautomatic AR rifles and pistols.

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16 thoughts on “Gunmaker Colt Files for Chapter 11 Bankruptcy

  1. Considering that Colt did not honor retirement conditions for former employees that dates back quite a few years I’m sort of glad to see them go down the drain.

    1. Considering that Colt’s employees became members of the United Auto Workers (UAW) union several decades ago, I guess then that it would be fitting to say that I’m glad to see those employees loose their retirements…. and possibly their jobs all together now. The employees with their union, extorted the company via the back door. This is what unions do best… bust company’s with extravagant wage demands and they hold the employer hostage with workers that would have been fired in other (non-Union) companies, due to laziness. Everybody looses. Thanks UAW, great job.

      1. You must be one of them CEO’s that make 15 mil a year and can’t stand to see someone making a livable wage. The thing that happened is when Obummer passed that law where it makes it harder for gun manufacturers to obtain financing to be able to keep doing business. “Operation Choke Point” Do some research and quit pointing fingers. I am NOT glad someone got put out of the workforce, as that is what keeps this world turning!!!

      2. Sounds to me like Chuck wagon is a non-union SCUM-BAG, He probably drives a Foreign auto,which means it’s people you is the REASON our Country has been taken over by CHINA. I hope you have mastered the Chinese language also…….Then you can rub elbows with your masters……

  2. Its a sad story, I mean Colt! An American Icon of the firearms industry! These things happen though more than people realize. I’m wondering how much the federal government has to do with this? The federal government needs to be abolished! Too much power over a government for the people, by the people! They take our tax money, and we have no say-so as to how it’s spent! That is wrong! Then you have this fraudulent clown obama come in and just spend us into a crisis that destroys the USD! Citizens of America deserve better! It’s past time we take a front line stance on the evil destroying our country!

  3. Its really too bad, but they stopped innovating many years ago. They also chose to go after federal contracts as opposed to providing products to the public. It really is a shocking level of mismanagement given the prices Colt firearms demand. I’ve not been a big Colt fan, but it is still sad to see such an icon of America go down.

  4. Colt helped build this country. it is interesting how markets change, and unfortunate that companies such as Colt are impacted by these changes. There are many manufactures today versus historical builders of firearms, but all are not of the quality some of us seek and that Colt produces – of course many are. if Colt is not able to restructure and continue to operate and innovate it is unfortunate for the industry and our country.

  5. I’ll give you that there is a certain mystique about the Colt “Pony” logo; but it neither enhances nor diminishes the flying profectile. Business is a cruel undertaking. “To The Victor…”

  6. Wow any one who would celebrate some one loosing their job and retirement wow your a peach show some gratitude to the men and women who died to bring you a fourty hour week and a safe working environment not to mention health care and a little retirement like it or not what the unions have done benefit all hope some one showes the same compassion when you loose your job and pension

    1. Amen brother,that idiot needs his own wake up call.I will celebrate him loosing his job as I am am uaw retiree.

  7. I hope they are able to restructure. This time without the UAW draining their payroll. I an see when colt was going like Hummer the UAW was paying real close attention to free profit. A lot of good that union was in helping the firearms maker. First by cutting quality of their product then jobs of skilled craftsman. It sure is sad to watch a proud American company eaten by the greed of a few.

  8. I’m glad to see ignorance is alive and well! Blaming a Bogeyman instead of learning the facts and then making a rational, informed comment is far easier than using one’s critical thinking skills.
    Of course we all know there is never mismanagement on the corporate level. I would like to know who’s to blame when a company implodes and there is no union involved? Probably the governments fault then huh?
    God Bless America and the hard working Union Members of this great Nation!

  9. Unions & Government, what’s the difference. They both create incompetence, waste, fraud and abuse. Result, bankruptcy and trillion dollar debt.

  10. Colt is done for. All right, gunmakers of America, start turning out clones of guns Colt stupidly discontinued years ago–the Woodsman, New Service, Python and Detective Special, for starters.

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