Is it RIP for colt?

[thorborg]

http://weaponsman.com/?p=22825

Read More

 

[JamesRL]

Colt has gone bankrupt before (Sam Colt, that is), but this may be the last time. As I understand it, a lot of their problem is that they went "all-in" for military production and then lost the M16/M4 contract to a lower bidder. There's no way on earth they can compete in the civilian market for AR-clones, since their quality is no better (and often worse) than rifles selling for less.

This has been a long time coming for Colt. I have an example of their "Series 80" 1911 - purchased in 1983 - and it was one of the worst firearms I ever purchased - the barrel was so poorly fitted to the slide that the locking lugs were peened round within 500 rounds. It took nearly $800 (in 1994 dollars) to get it up to the quality of my $700 (2014 dollars) Ruger 1911.

Given the current political environment, I doubt that there will be anyone stepping up to bail out Colt, especially given their dismal prospects. I can't imagine that even their name recognition is worth much, anymore.


Jim

 

[The Heretic]

Someone will step in to buy their IP (blueprints, etc.), maybe their tooling and the rights to their name and branding, but buying the company itself? Probably not.

In my experience (I've been through this with several corps I used to work for - common for high tech startups), the buyer will probably get quite a deal, or the owners will hold off for years and then sell for even less.

 

[Just Jim]

Ya too bad Colt couldn't keep making quality guns. They used to be really good but it's hard to compete with guns that have mim parts. Other companies start it then you have to lower your standards too. I would rather have an older Colt than the guns produced today.

 

[MountainBear]

I would rather have an older (insert any brand here) than the ones produced today.

Remington, Marlin, S&W, Colt, even Ruger to a lesser extent. They have all dropped in quality in favor of quantity and profit.

 

[Outrider]

Colt's limited production line, lack of new product designs, and over-reliance on military contracts are only part of the problem. Colt's main problem is what private equity firms have done to it. As I wrote several months ago:

Between 2005 and 2009, Sciens Capital and The Blackstone Group loaded Colt with massive debt while taking distributions and paying themselves high management and advisory fees. Colt was in weak shape in 2005 and 2006 but each year Sciens and its affiliates took out at least $40 million from the corporation. In 2007, they did a leveraged recapitalization. The company borrowed $150 million and the private equity firms paid themselves over $130 million in dividends. In 2009, Colt borrowed another $250 million and this cycle repeated itself.

In the wake of Sandy Hook, when gun companies were raking in cash due to panic buying, Colt still lost money because of how the private equity firms were running the company. They're taking the value out of it and leaving a husk.

 

[Certaindeaf]

The "building" probably did them in.. you know, the "my last/next build" guys.. that then sold them by the truckload?
Oh well.

 

[mjbskwim]

So is this a different story than the one a few months ago?
Or have they had Colt on life support for that long again?

 

[FireArm]

Someone will step in to buy their IP (blueprints, etc.), maybe their tooling and the rights to their name and branding, but buying the company itself? Probably not.

In my experience (I've been through this with several corps I used to work for - common for high tech startups), the buyer will probably get quite a deal, or the owners will hold off for years and then sell for even less.

I doubt Taurus will buy it, just like Rossi and S&W.

 

[sixfoot674]

might get picked up by Freedom Group which has purchased bushmaster,dpms, remington and many others. use the name and tooling but strip it to barebones..

 

[Sstrand]

Consolidating all those companies will make it easier for Bloomberg to close them when he buys Freedom Group.

Sheldon

 

[Goosebrown]

Historically, Colt is an interesting firearms manufacturer. However they haven't turned out a quality product in 50 years or more other than revolvers and there are probably enough on the market already for the next 75 years.

I will hoist a beer to them, but not much more than that.

I have had Colt ARs and they were far inferior to the ones I have built myself. I would never buy any of their products again even if they do survive.

 

[Kid@Heart]

I love my Anaconda and Gold Cup.

 

[Liberty97045]

Maybe Remington will acquire them and REALLY drive the brand into the ground

 

[Certaindeaf]

Did that union retirement investment group buy Winchester first?

 

[mrblond]

NRA should buy Colt. I bet if every member chiped in 20 bucks it could be done.

 

[Martini_Up]

Did someone mention Remington?

 

[Just Jim]

Well let's see, which gun company hasn't been sold out except Ruger?

 

[jrprich]

I love my Anaconda and Gold Cup.

I love all my Colts from my 1908 Vest Pocket Auto .25 made in 1919 to my AR15 LE6920 M4 5.5.6.
I disagree with the view that Colt quality has dropped since the 70s. There was some poor quality in the 80s during the strike, but IMO their gun quality has been very high from the 90s to the present. I shoot all of mine and none has ever had a failure or issue. But to each his own.
I will be sad if Colt goes under. They are a piece of our history and have survived longer than most US firearm makers. If they cease all production then Colts will rise even faster in value. But since I doubt I will ever sell any of mine so this will just mean I will likely be unable to afford any more......and that makes me sad

 

[Sgt Nambu]

I love my two Colts, an officers 1911 and a Colt H-BAR! Never sell them!
On the other hand, I clearly remember the late '90s when Colt ceased production of they're "Snake Revolvers" preparatory to ceaseing civilian sales.
Well........Hasta La See 'Ya Colt!!!