Colt shutdown?

[likeitfast55]

http://online.wsj.com/articles/gun-manufacturer-colt-warns-of-possible-default-1415892942

I did read that the London plant was shutdown recently. Do not sell your Colts if there is any truth to this. Does anyone have any other info? Someone said that the banks closed the doors yesterday.

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.

[War Machine]

I don't understand why they have such a hard time, when I think of colt, I think of a great gun company

[Sleeper]

With so many companies making the same guns at a lower price point its easy to see.

[Trick Pony]

Not everybody wants to pay for Colt quality. I am a big fan and would be sad if they go under, although a lot of my favorites are discontinued models anyway. I just bought a 40 year old Colt today, in fact.

[David]

Someone else will buy and keep chugging along.

[Chas_svo]

Someone else will buy and keep chugging along.

Hopefully someone that can run the business, and not ruin the company and its name.

I like my Colts.

[Moose242]

Colt has had their heads up their asses for two decades. The name Colt will never die though (just like armalite, springfield armory, etc).

[YALE]

Colt has had their heads up their asses for two decades. The name Colt will never die though (just like armalite, springfield armory, etc).

This. I'd look for FN to make a play for them. They're already in a position to scoop up a lot of military contracts, if Colt folds.

[likeitfast55]

Colt has had their heads up their asses for two decades. The name Colt will never die though (just like armalite, springfield armory, etc).

So true, they have slid by on their name and past reputation for quality for the past two decades.

[jefehbk]

Group buy for the company?

[inline 6]

colt = overpriced

[John -- '02 HAWK]

freedom group must be licking its chops as well

Almost all of their pistols are 1911s, I wonder why they didnt get into the glock/SA composite game they could probably have got an infusion of capital by doing so

[Moose242]

colt = overpriced

They are $660 new in box with 5 magazines.

[Moose242]

freedom group must be licking its chops as well

Almost all of their pistols are 1911s, I wonder why they didnt get into the glock/SA composite game they could probably have got an infusion of capital by doing so

They tried and failed miserably.

[inline 6]

Everything they make is???? Was the article just about one product?