Home Forums Hunting & Shooting Handguns The future of Colt??

Friends,
I received this from a good friend that is a talented stock broker as well as a great shooter. No one can predict the future, but it's worth considering.
Greg



Gentlemen;
If you ever wanted another Colt, now would be the time to rush out and get one. Bloomberg and Wall Street Journal just reported that Colt Firearms will probably default on their $380 million in debt, later this month.

That means that if they cannot find additional financing (or a buyer) they will probably fold.

When you sell out to a single buyer (.gov, Wal-Mart, etc.), this happens every time.

That said, perhaps the new buyer will move Colt out of the USSA.

Here's a link to the Bloomberg article.

Bloomberg Article on Colt Defense.

Dan

My opinion Colt priced themselves out of business. Most over rated handguns on the market. I knew when Colt stopped production on the Woodsman and Trooper they would eventually close their doors

In their halcyon days, they made some mighty fine guns.

The new gun market won't miss a beat.



Travis

Agreed.

Over priced, poor management, piss poor product development, big govt. contacts, and union labor have all added to Colt's demise.

It seems Colt does this every 10-15 years and has since the 1970s. Oh well, not like there aren't Colts to be had.

If a gun company can't make a profit in today's market, it doesn't deserve to survive.

Were stockbrokers in 2008 telling everyone to run out and buy a GM or Chrysler car if they wanted one because they were about to default? Companies default every day and life goes on. Maybe they go into Chapter 11 and the business or the key assets get sold to someone else who intends to use them. Remember when USRA shut down in 2006, and everyone lamented the end of the Winchester design, and guns got reintroduced in 2008 under new ownership?

The worst case is that someone like Bloomberg wastes money and buys the company or assets so it can shut them down, and you buy a Kimber/Springfield/Ruger/S&W/RIA/etc. instead. I really don't see a life altering downside.

Ain't that the truth.

When you've made sure your only real client/customer is .gov, you're doomed no matter the economy.

I have never owned a Colt of any kind. Can't say I have never lusted over a Python or two, but never spent the money, so I won't necessarily miss them, but I do hate to see historic companies go by the wayside, especially gun companies.

How many times has Colt been broke or near bankrupt?

If Colt does go under I am willing to bet the likes of FN, Beretta, ATK or some other company would pick them up if nothing else to keep the Colt name alive.

This ^^^^

Someone will buy the name, but not the labor force.

Colts problem is and has been poor management. The work force cannot make up for poor management.

Management/leadership is always the problem.

Always.

Always.

Always.

Bet on the bright side, my Delta may go up in value a smidge.



Travis

Colt's biggest problem was Colt Industries, the holding company - they ruined several good American companies by pulling all the profit out and allowing no re-investment. Holley Carburetor and Fairbanks-Morse are two examples - companies that once dominated world markets and are now shadows of their former selves. I'd almost bet Colt is still paying big royalties just to use their own name.

Colt did have a lot of union problems in the 1980's, but pretty well got their act together in the 1990's, and have been making good stuff since then.

I expect that if they fail, the brand will be picked up by somebody. Hopefully someone who will respect it and run it well.

1+

Bummer. Hopefully Colt Mfg. will once again be spun off from Colt Defense.