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June 15, 2015, 02:43 PM | #1 |
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Colt just filed Bankruptcy
http://www.bloomberg.com/news/articl...for-bankruptcy
Bye bye...too much competition. Not enough demand. Last edited by spodwo; June 15, 2015 at 08:53 PM. |
June 15, 2015, 02:46 PM | #2 | |
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Before this gets closed as a drive-by, I'll just drop this here.
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June 15, 2015, 02:51 PM | #3 |
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Filing for "Chapter 11" is not the same as "Bankruptcy".
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June 15, 2015, 02:55 PM | #4 |
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Take a look at what Winchester and FN did. Colt can re-organize.
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June 15, 2015, 04:05 PM | #5 |
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Chapter 11 is Bankruptcy. But, it is not a liquidation. In a very basic sense, it gives the debtor (Colt) time and some leverage to re-negotiate its debts. However, it is not without its consequences. If the debts can't be renegotiated under a plan, there is a possibility that Colt could be fully or partially liquidated. I'm assuming that Colt will be a debtor in possession for now.
It looks like Sciens Capital Management is seeking to buy Colt's assets - probably strip out some of the debt as part of the asset sale. Sciens Capital Management, LLC is an investment firm specializing in direct and fund of fund investments. In direct investments, the firm specializes in middle market, mature, leveraged buyouts, and turnarounds. The firm typically invests in early stage technology companies, development stage technology, and non-technology companies. It prefers to be the lead investor or control investor and seeks to take a seat or observation rights at meetings of board of directors and board committees. Sciens Capital Management, LLC was founded in 1986 and is based in New York, New York with additional offices in Athens, Greece and Ontario, Canada. Last edited by Skans; June 15, 2015 at 04:16 PM. |
June 15, 2015, 04:07 PM | #6 |
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It is the two-step side shuffle to avoid repaying those who bought their junk bonds
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June 15, 2015, 05:42 PM | #7 |
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Over on the WeaponsMan blog there have been a series of very detailed postings on Colt.
Colt Bankruptcy write-ups He is very pessimistic about the company staying in business. Bart Noir
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June 15, 2015, 07:16 PM | #8 |
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If I did not know so much about Colts history I would be more worried.
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June 15, 2015, 08:34 PM | #9 |
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This was talked about on this forum about 3 months ago - and in listening to the analysis, there are 3 or so primary issues: Lack of demand, too many competitors and lost a big Government contract. I liken it to too much cheaper product out there. And I do mean cheaper: cost and quality.
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June 15, 2015, 09:02 PM | #10 |
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Years ago the Bullseye target shooters I knew would buy a 1911 from Colt, and without even opening the box would ship it off to a gunsmith to get it to work.
Not just accurize, but to get it to load, fire, and eject. The common complaint was, right out of the box it wouldn't work. Their designs were outdated, and REQUIRED a skilled gunsmith to assemble and get them to function. |
June 15, 2015, 09:10 PM | #11 |
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Having just read the above post - I wish I would have kept my Colt Gold Cup Series 70 that I bought in the late 70s.
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June 15, 2015, 11:09 PM | #12 |
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Until I saw .22 ammo with the Colt brand on it about 10 months ago, I had no idea the company even existed. Pretty sure it's Aguila ammo repackaged with a Colt label, near as I can tell.
"Not enough demand and too much competition..." however, doesn't even make sense--the two don't go together. I have to think it's far more along the lines of not knowing what they wanted to do when they grew up. If anyone asked me right now "what is Colt known for" I'd say "Uh, 19th century revolvers?". With the question mark.
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June 15, 2015, 11:18 PM | #13 |
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Colt really needs a change in management if they want to be successful. They relied too heavily on military contracts to stay afloat and completely forgot about the civilian market. Sure they still make some pretty nice 1911's, and yeah they make some nice rifles (though overpriced for what you get IMO) but it's been a while since they have really come out with some new innovative products. You can only survive for so long making M4's, 1911's, and the occasional order for a Peacemaker. Adapt with the times or get left behind.
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June 16, 2015, 07:12 AM | #14 | |
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Quote:
Too many restaurants on a corner - one goes belly up. Too many hotels in a market - one or two goes back to the bank. Colt made AR15s. And S&W made AR15s.... How many AR15 companies now out there? Or build your own parts stores? How many make a "traditional" .45 now? etc.... Just read an article And guns sales aren't growing like they were and are still declining against the boom year of 2013....again not enough demand and a lot of competition. Cheaper competition. |
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June 16, 2015, 07:47 AM | #15 |
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Colt was really known for its wheel guns, 1911's and AR's. Like someone pointed out, everyone and their mother makes 1911's and AR's. S&W makes good wheel guns, but not like Colt once did. Colt's finer line of revolvers was the one thing that few companies could replicate - I guess there simply wasn't much demand for them until they decided to stop making them. Colt would have been smart to transition into making high-end semi-autos, revolvers and perhaps even long guns. Their ability to make fine guns is what set them apart from the others - they never should have dumbed it down.
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June 16, 2015, 09:20 AM | #16 |
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Didn´t Colt just make a deal for $22.5mil.with the USMC for a new M45 pistol?
X-Army.....Never understood why they couldn´t fall into line with the other Armed Forces and use the M9. Colts aint cheap! |
June 16, 2015, 11:08 AM | #17 | |
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June 16, 2015, 11:29 AM | #18 | ||
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June 16, 2015, 11:47 AM | #19 |
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I thought Colt was about 85% owned by Zilkha & Co, and run by Donald Zilkha. What makes you think that it is owned by Sciens Capital Management?
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June 16, 2015, 02:36 PM | #20 | ||
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Quote:
http://www.theguardian.com/us-news/2...les-bankruptcy Quote:
Last edited by thallub; June 16, 2015 at 03:10 PM. |
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June 16, 2015, 08:31 PM | #21 |
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Didn´t Colt just make a deal for $22.5mil.with the USMC for a new M45 pistol?
I know that they were all cracking during testing. This was almost 3 years ago now, and just a couple years before that the Marines bought a bunch of Beretta M9A1's to replace the standard M9, so unless someone can chime in I am not sure if they went through with the deal. The Colt M45 is ONLY for the use of MARSOC Marine Special Operations. The standard Marines still use the M9 series. The deal went through and the Marine Spec-ops are using the new Colt M45. The early cracking problem was caused by a machining problem on prototypes, which was fixed and no more cracks. This is why firearms (and most anything else) gets prototyped and tested before being bought and issued, just to turn up problems. |
June 16, 2015, 10:11 PM | #22 | |
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Quote:
Last edited by Dragline45; June 16, 2015 at 10:17 PM. |
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June 16, 2015, 10:43 PM | #23 |
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Dfariawheel- "The early cracking problem was caused by a machining problem on prototypes, which was fixed and no more cracks.
This is why firearms (and most anything else) gets prototyped and tested before being bought and issued, just to turn up problems. " Yep, you beat me to it. Also, the services had cracked slides when the first bunch of M9's came out. Changes were made, problem fixed. "The M45 is sweet" I wish I could afford one. I think someone else also said what I was thinking on the issue of why Colt is failing. They left the civilian market and went with what seemed like straight mil contracts for a long time. That was a bad idea. With the Tax situation in the state they're in, it can't be helping their situation either. Hope they get themselves turned around. Hooyah |
June 17, 2015, 08:16 PM | #24 |
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I have always been under the impression that there have been extraordinary labor (read "union") issues as well.
Want to argue? Listen closely to the lines drawn in the coming days. Union will not make a single reasonable concession, say I. This is why traditional industry is fleeing New England. |
June 17, 2015, 09:25 PM | #25 |
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My hope is that some one who knows what the heck they are doing will end up running Colt.
The name is too big not to be back. I would have really liked a Mustang .380 But not for $600 when you can get some thing just a good for $299 or spend just a little more and get something great. $399 I would have at least one maybe two. Will see.... |
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