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Old April 1, 2013, 06:35 PM   #1
Beentown71
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Kel-Tec going out of business/for sale soon?

Was at my LGS (one of the largest in the nation) and asked about ordering a KSG. Basically, they are not going to order anything from them as they (Kel-Tec) may be going through some major changes soon (BK/For sale). This isn't the first time I heard it because a friend had asked at another LGS.

Usually I would just ignore this type of banter at a gun-shop but this is one of the few that I believe.

So what say you TFL? Anyone have a line to Kel-Tec? In these times it would be hard to imagine someone in the industry going out but they have had their issues. Seems like every gun they come out with has a huge following at first, they take forever to bring it to market for one reason or another and then people loose interest. If there still is a demand another manufacture actually brings the idea to market before them.
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Old April 1, 2013, 06:55 PM   #2
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April Fools?
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Old April 1, 2013, 07:03 PM   #3
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IMHO, Keltec has quite a few interesting items people want. Problem is, you can't find anything on dealers shelves.
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Old April 1, 2013, 07:11 PM   #4
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AND TODAY'S DATE IS??? Good one, almost! LOL
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Old April 1, 2013, 07:44 PM   #5
Beentown71
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Actually it is a serious question. This happened to me personally speaking to the manager of one of the Nations largest dealers. They consistently have people 40 deep during the week waiting to purchase a gun. This last weekend I was number 96 and they were calling number 13 Luckily they saw me and pulled me aside. Not to mention they are a huge dealer to departments. They know whats up generally being the size they are.

I am going to go in this week to pick up some stuff and verify what he said. I need to make sure that I didn't pull this out of a different context than was meant.

Just wanna know if any TFL'ers have heard anything or have a line to anyone at Kel-Tec?
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Old April 1, 2013, 09:48 PM   #6
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Quote:
They know whats up generally being the size they are.
Don't count on it.

Okay, gun store manager, often claimed to be people in the know about behind the scenes issues, often are reported to claim all sorts of weird things. You may think from the position the person occupies that they necessarily know what is going on when in reality they are just spreading silly rumors like the rest of the folks. That this information comes from an unknown source of an unknown store doesn't add to any credibility.

Even if for sale, so what. S&W has been sold several times. Many guns companies have. They continue to produce guns.

For years in the early naughts, Colt was reported by folks speaking with numerous store managers, dealers, and purported reps to no longer going to be selling to the civilian market. Buy while you can because you won't be able to find Colts anymore.

Here are some other rumors from gun stores...
S&W can only produce 300 guns per day by contract...
http://thefiringline.com/forums/show...ighlight=rumor

How about Bushmaster and RRA buying back lowers at 120%?
http://thefiringline.com/forums/show...ighlight=rumor

Michigan gun range owner expected newly designed Mini-14s in the near future...
http://thefiringline.com/forums/show...ighlight=rumor
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Old April 1, 2013, 10:01 PM   #7
Beentown71
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Re: Kel-Tec going out of business/for sale soon?

Oh, I rarely believe any gun store fodder but this is someone I actually trust. He is not a rumor spreader. Guess only time will tell. Of any I could see it from it would be Kel-Tec.

Over promise, under deliver.

I would have personally purchased three of their wares buy now if they would/would've become available. All the R&D has to be funded somehow.
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Old April 2, 2013, 04:04 AM   #8
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Biggest problem with Kel-Tec is that they can't seem to meet the demand, even before all this panic buying. It baffles me that they can't do something to ramp up their production of some of their more popular guns.
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Old April 2, 2013, 05:44 AM   #9
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Had a friend take a young Lady to the plant in Coco (extraction problems when I took her to the range, PF-9) they basically re built her pistol, now flawless.

My Buddy said they had major building going on, having had to close an assembly line down, to use the range! Now fixed, does not sound like they are tight with cash to me.

They are so customer oriented, leave Company's like Glock and S&W in their dust.

I own a PMR-30, 30 round pistol, in .22 magnum. Never a misfire, very accurate, trigger pull like a target.22. It weighs nothing!

Now if they would bring out a Bull-pup .22mag rifle, 16" Brl, using that 30 round magazine!
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Old April 2, 2013, 07:32 AM   #10
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From Kel-Tec's website:
____________

Kel-Tec CNC Industries Inc. is a privately held corporation. Kel-Tec continues to grow and expand at our Cocoa facility thanks to our many satisfied customers. In addition to our 26,000 sq. ft machine shop, our 6200 sq. ft. assembly area, and our 8920 sq. ft. final assembly and repair center which has a 100 yard indoor shooting range, we have begun construction on a new 12,500 sq. ft. building to house materials needed just to keep up with demand.

____________
This doesn't sound like a company getting ready to close down. An IPO perhaps? Who knows, but my guess is that Kel-Tec's product will be produced well into the future, barring any idiot legislator's attempt to shut them down.
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Old April 2, 2013, 08:39 AM   #11
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Re: Kel-Tec going out of business/for sale soon?

Quote:
Originally Posted by Skans View Post
This doesn't sound like a company getting ready to close down. An IPO perhaps? Who knows, but my guess is that Kel-Tec's product will be produced well into the future, barring any idiot legislator's attempt to shut them down.
I hope so as I like more competition and the unique items they "try" to bring to market.

Just because they say expansion is happening doesn't mean all is well. I have attended many auctions of equipment that was brand new and being set up...still being auctioned because the company was robbing Peter to pay Paul. Peter quit giving credit.
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Old April 2, 2013, 08:57 AM   #12
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I attended a gun show several weeks ago where a number of dealers were selling Kel-Tec's newest shotgun. I doubt many sold for the $2,000 price tag these dealers were trying to get, but I believe the suggested retail is something like $900. They would sell quickly at that price - nice piece of work on Kel Tec's part.
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Old April 2, 2013, 10:56 AM   #13
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Quote:
So what say you TFL?
Kel Tec is simply behind on production, the same as everyone else. They are a very small company dealing with a huge amount of demand. The KSG has been a pink unicorn in terms of availability since it came out, and well before the panic.
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Old April 2, 2013, 06:29 PM   #14
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Well, I got it all messed up because I had heard rumors about Taurus buying them
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Old April 2, 2013, 06:54 PM   #15
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I would assume it's even tougher for a "small" company to meet the exponentially increased demand than say the 'Big-Boys.' Problem with Kel-Tec (and I'm a fan that many times use a P11 as primary CCW, also love the Sub2K) is that they have had a production problem forever (well before the panic hit).

As I see it, capitalism will win-out in the end whereby if KT gets "an offer it can't refuse" they will sell-out at a profit (they still do this in our Country, true ...)). Until then, they will forever be playing catch-up absent a willing investor. And no my local gunshop which gossips about this stuff like ladies discussing soap-operas has not heard of it.
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Old April 2, 2013, 07:32 PM   #16
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Re: Kel-Tec going out of business/for sale soon?

Quote:
Originally Posted by Tom Servo View Post
Kel Tec is simply behind on production, the same as everyone else. They are a very small company dealing with a huge amount of demand. The KSG has been a pink unicorn in terms of availability since it came out, and well before the panic.
Have they ever not been behind on production?

I bet an engineer owns the joint. If you work with engineers much you will get the joke.
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Old April 3, 2013, 07:51 AM   #17
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Their guns are definitely not the most reliable. I have known people to get very excited getting a hold of their .308 bullpup. switch tube shotgun, and Grendel remake 22 magnum only to put them on the secondary market a few weeks later due to malfunctioning.
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Old April 3, 2013, 11:24 AM   #18
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Quote:
Have they ever not been behind on production?
When it comes to things like the KSG, the Sub2000, and that .308, no.

They offer products the public wants at a very good price, so I don't see them catching up any time soon.
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Old April 3, 2013, 12:12 PM   #19
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I was even told that George Soros bought Marlin and was shutting it down. So much for such rumors.
KT is an excellent maker, and I think the demand for their guns will keep them in business for a long time. I hope so!
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Old April 3, 2013, 03:32 PM   #20
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never , never pay any attention to what a BBS manager has to say. many of them are not gun people and only know what there bottom line is to keep a job.
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Old April 3, 2013, 05:06 PM   #21
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I would love to see a .22 magnum bull pup rifle. Use the magazine from the .22mag pistol. Flawless in my pistol. Should weigh in at around 5lbs, awesome.

I can not find .22 magnum ammo?
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Old April 4, 2013, 09:41 AM   #22
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They offer products the public wants at a very good price, so I don't see them catching up any time soon.
As stated in another thread, working for a AR parts manufacturer we simply cannot keep up with demand. Every time there is a glitch ( machine goes down ) just makes matters worse and getting more behind means getting caught up even further out of reach. The machines DO break down unavoidable happenings with mechanical devises that are being asked to run 24/7 at 100% speed
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Old April 4, 2013, 01:05 PM   #23
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I have a background as a financial analyst, and I can tell you that maligning a competitors financial stability is one of the oldest tricks in the world.

If you can't beat the products, quality and price of your competitor the only thin left to do is undermine their name.

If the company is private it is easy undermine them because the owners are not going to make their financial statements public.

My observation is simple: they are a growing private company with a long backlog on their products. That sounds like the opposite of a failing company. The ones that go broke are the ones can't sell their products.
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Old April 4, 2013, 03:26 PM   #24
Beentown71
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Re: Kel-Tec going out of business/for sale soon?

Quote:
Originally Posted by kahrguy View Post
never , never pay any attention to what a BBS manager has to say. many of them are not gun people and only know what there bottom line is to keep a job.
Not a box store by any means but one of the largest dealers in the Midwest.

I wasn't able to make it there this week and confirm his thoughts and then pick his brain. Maybe it was frustration of not getting any product from them? Doubt it or he would have just told me that. During this whole ordeal they have had AR's on the shelf everyday practically...at normal pricing or 20% higher. Today they have RRA's piston rifles for $1,200, carbon15 with bushnell red dot $799, op ready combo with VORTEX for $900, etc....

Really how many are you selling if you can't get them out?

Again, I am by no means saying they are done. Just something for us gun aficionados to look out for.
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Old April 4, 2013, 03:42 PM   #25
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Re: Kel-Tec going out of business/for sale soon?

Quote:
Originally Posted by Eppie View Post
I have a background as a financial analyst, and I can tell you that maligning a competitors financial stability is one of the oldest tricks in the world.

If you can't beat the products, quality and price of your competitor the only thin left to do is undermine their name.

If the company is private it is easy undermine them because the owners are not going to make their financial statements public.

My observation is simple: they are a growing private company with a long backlog on their products. That sounds like the opposite of a failing company. The ones that go broke are the ones can't sell their products.
Your "financial background" observation has nothing to do with the discussion. The LGS has nothing to gain by Kel-Tec doing poorly. It wasn't a Wyndham rep speaking about them. It was a LGS that carries their product.

Kmart, Hostess, Lehman Brothers, Washington Mutual, CIT, Enron, Texaco, etc.... all sold plenty of product and still mismanaged financials enough to need bankruptcy protection.

Having a wanted product isn't enough....got to get it to market and manage properly throughout the whole process.
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