Springfield XD Forum banner
1 - 20 of 28 Posts

·
Administrator
Joined
·
22,367 Posts
No way. With as much government contracts they have and as popular as they are.
 

·
Registered
Joined
·
4,209 Posts
What they didn't fork out enough cash to Obumma to get some of that capitol cronyism cash!

Maybe GE got Colts share.
 

·
Banned
Joined
·
20,016 Posts
Don't anybody tell Nathan. With all of his gun troubles if we told him that his AR manufacturer was going under he may find a short rope and a tall stool. :-D
 

·
Registered
Joined
·
828 Posts
Colt has been a dumpster fire of a corporation for years. They rotate execs through like an assembly line, pay off sexual harassment/bigotry claims quarterly, and take million dollar losses on government contracts (M-240).

They have been a "junk" bond as long as I can remember. About the only time they rate "average" on the S&P is when they overstate earnings and then eat crow when audited.
 

·
Registered
Joined
·
5,759 Posts
I'm not sure where to start.

I guess first off, I'm not really a huge fan of the "brand" NAME. Because really, that's what it is.

And they've rode that wave for too many years. In reality, they haven't done anything breath-taking or innovative since...

When?

As for not making a loan payment on time, that's hardly bankruptcy.

Has anyone else noticed that the MAP (Minimum Advertised Pricing) on both Colt AR15's and 1911's have decreased by several hundred dollars in the last few weeks? That isn't by accident. They're dumping a bunch of guns in the market at reduced pricing to "make" some sales. $899 model 6920's won't last long folks.

They've been hit with budget cuts on their Military sales side, which truthfully is their main income source

They've guarded mil contracts like a pit bull at a crack house. (ie. suing other manufacturers for just using the term "M4, etc).

Heck, they've even sold M16's to Iran for pete's sake.

And now, they suddenly decide to have a "sale" on their flagship gun (AR/M16 which in reality they didn't invent anyway, they bought the rights from Armalite) so the price drop isn't because they love you guys.

They're counting on you to bail their butt out.
 

·
Registered
Joined
·
3,851 Posts
I do agree with John in a way. What was the last spectacular thing Colt made? They've just sort of costed of past success. Nothing wrong with that, they have earned it. If I was in the market for a Colt, it'd be an older one. Back in the day when they would not be considered second. Modern Colt is fine with complacency.

Again, not knocking Colt. They make a great product. They just lost the WOW factor.
 
  • Like
Reactions: HB of CJ

·
Registered
Joined
·
777 Posts
The CEO's suggestion in '97 that Congress should require all gun owners to get a federal permit didn't exactly endear the company to the gun community.
 

·
Registered
Joined
·
6,229 Posts
PSA has been getting the orders. THAT'S why it takes so long to get your items.
 

·
Registered
Joined
·
749 Posts
They can move all their operations to Texas and get our of those expensive liberal "tax businesses to death" states. Then they can make. Come on down, ya'll, but leave yo blue politics in the nanny states.
 

·
Premium Member
Joined
·
4,647 Posts
I can't read it without subscribing.
For those that don't subscribe to the WSJ:

Colt Defense LLC warned that it could default by the end of the year, as the privately owned company, which has suffered from declining demand for rifles and handguns, is likely to miss a payment to bondholders.
The gun maker faces a $10.9 million payment to bondholders Nov. 17, according to a filing on Wednesday with the U.S. Securities and Exchange Commission. If Colt skips the payment, it will enter a 30-day grace period, but without payment by Dec. 15 it will be in default and bondholders can demand immediate, full payment.
Colt, which is controlled by investment firm Sciens Capital Management LLC, had $248.8 million outstanding on the bonds as of June 29. The bonds were trading in the mid-30 cents on the dollar—deep in distressed territory—on Thursday.
Sciens declined to comment.
Colt, which has been manufacturing firearms and supplying the U.S. military since the mid-1800s, isn’t alone in grappling with weak demand, especially for sporting rifles. Smith & Wesson Holding Corp. reported a 46% drop in operating income for its latest quarter. And Cerberus Capital Management LP-owned Freedom Group, which owns the Remington Arms and Bushmaster brands, was recently downgraded by Moody’s , which cited pressure on earnings and revenue amid demand volatility.

Even if Colt is able to pay bondholders in time, it is “probable” that Colt will violate a $48.1 million term-loan agreement by Dec. 31 without an amendment or alternate financing, the company said. It added that it is in discussions with existing and potential lenders over the situation.
Lenders amended the agreement earlier this year, allowing Colt to skip three $1.9 million payments through March 2015.
Colt, which is based in West Hartford, Conn., and Kitchener, Ontario, declined to provide any additional information Thursday.
The company revealed its financial woes in Wednesday’s SEC filing to explain why it couldn’t file a quarterly financial report on time. Colt said it is down to $1 million in availability on its revolving credit facility and is still “working through accounting considerations and liquidity concerns.”
The gun maker said it expects to report a 50% to 60% decline in operating income for the quarter ended Sept. 28, compared with the year-earlier period. It also expects to swing to an operating loss for the first nine months of the year. Colt blamed its financial troubles on market trends including declining consumer sales of rifles and handguns and delays in sales to the U.S. government.
Colt was cut deep into junk territory by both Moody’s and Standard & Poor’s in recent months. Each rating firm maintains a negative outlook on the company. In the event of a default, S&P said in September that it expects bondholders to recover no more than 10% on the debt.
 

·
Banned
Joined
·
20,016 Posts
Thank you. That last line is pretty ugly huh?
 

·
Registered
Joined
·
3,851 Posts
Thank you. That last line is pretty ugly huh?
Ugly, but true. The market isn't what it was. Back in the day it was Colt. They were top quality. Now they have to compete with companies like Palmeto which offer quality for sometimes 1/3 of the price. I don't know how many old Colt loyalists I've talked to that have shifted to companies like BCM, Daniel Defense, RRA, and lmt. "Similar" price points.
Old wheel guns... Colt, or Smith.
New wheel guns... Smith or Ruger

1911s I'd say they don't get nearly the share they used to. Quality is at an all time high at that price point. With companies like Sig, Springfield, Kimber, Smith, Dan Wesson, and les Baer all making great quality guns in the 900-1500 price range. Colt needs something new.
 

·
Registered
Joined
·
10,949 Posts
Don't anybody tell Nathan. With all of his gun troubles if we told him that his AR manufacturer was going under he may find a short rope and a tall stool. :-D
I have them both on hand... Don't you worry...

:cry:
 

·
Registered
Joined
·
8,632 Posts
BrickBoys head is going to explode when he sees this thread title.


Sent from my iPhone using Tapatalk
 
  • Like
Reactions: HB of CJ

·
Registered
Joined
·
1,022 Posts
well, its an industry wide problem. I own stock in both Ruger and S&W. Both are in the tank. Ruger sales off 43% from last year.
 
1 - 20 of 28 Posts
Top