[vc_row][vc_column][vc_column_text]For even those unfamiliar with firearms, there remains a few words that stand as a symbol of excellence. Winchester. Remington. Smith & Wesson. Colt. And though opinions vary wildly and forums fill the internet with gun enthusiasts bickering over what firearms is better than others, few can argue that firearms that have withstood the test of time, guns like Colt, are as American as apple pie.[/vc_column_text][banner300 banner=”5517620b381df”][vc_column_text]However, Colt, the famed gun manufacturer, has fallen on hard times as it recently lost a profitable contract to supply M4s to the military and the gun manufacturer has declared bankruptcy.
On June 15th, 2015, Colt Defense LLC filed for Chapter 11 bankruptcy. In 2013, Colt lost a major contract when FN manufacturing underbid them to supply rifles for the military.
The company declared $500 million in debt with $500 million in assets on Sunday.
According to the company’s release:
“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 LLC. “While entering Chapter 11 protection in the absence of a consensual agreement with our noteholders was not our preference and we do not take it lightly, we are confident it is the best path going forward and will enable us to continue to gain traction on a challenging but achievable turnaround in our business performance and competitive positioning in the international, U.S. government and consumer marketplaces. Importantly, Colt remains open for business and our team will continue to be sharply focused on delivering for our customers and being a good commercial partner to our vendors and suppliers. We look forward to successfully executing on this plan, which provides a sound path of stewardship for an iconic American brand and the key stakeholders we serve.”
While this is unwelcomed news for lovers of the reliable weapons, it is hardly the end. Colt declared bankruptcy in 1992 and reemerged into the firearm market and quickly regained strong financial footing.
Samuel Colt, perhaps the world’s most-famous firearm designer, was forced to close his manufacturing plant in 1842 after eight years. Soon after, with grit and determination, the firearm inventor created the famous Walker Colt, a cannon of a gun that would be used by the military and launch Colt into stardom.
With several stumbles having been unable to sink the company, it’s likely that Americans will continue to shoot Colt firearms for years to come.[/vc_column_text][/vc_column][/vc_row]