Colt in trouble?

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TexasBill

TexasBill

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Moody's Investment Service has issued a credit advisory saying that Colt Defense's plan to restructure its debt is a warning sign that the company is in serious trouble.

Colt Defense acquired Colt Holding Corp. the parent company of Colt's Manufacturing Company in July 2013 so this would affect all Colt products.

Colt wants to exchange its existing notes or have its shareholders approve a Chapter 11 bankruptcy. Colt has mortgaged basically all its assets as surety for the notes.

A reorganization isn't that bad; happens all the time. However, in Colt's case, if the plans don't work out, Moody's says "its likelihood of remaining a going concern would be uncertain."

In other words, Colt would go under.

Maybe it's time for Colt to follow through on what they told me at the 2013 NRA Convention in Houston: bring back the nice double-action revolvers they let go by the wayside.

I, for one, wouldn't mind paying less than a king's ransom for an Anaconda.
 
I'd love that too, but do you have any idea how much it would cost to re-tool for double action revolvers? As is, I believe Colt has more or less completely divested itself of said tooling, and even most of it's workforce experienced in revolver making. It would just be too much money, and with autopistols ruling market demand these days, there just wouldn't be enough wheelgun enthusiasts like us for Colt to make a profit.

It just won't happen, unfortunately. :(
 
Colt has been declared dead or dying several times. Somehow they get through and muddle on. I second the idea of bring back many of the revolvers; cobra, anaconda and upper end items. I think they would sell.
 
Rumors & speculation....

What Colt does or how stable it gets has been discussed often on the forum.
I wouldn't be surprised if they shut down or go under, except for the remaining defense industry-military contracts.

As for the DA revolvers, Colt like S&W can not fabricate new revolvers then sell them to US consumers for $2000-3000.00 USD. :uhoh:
People aren't going to flock to Colt(which may or may not be around) to buy new firearms at used car prices, :confused: .

Rusty
 
bring back the nice double-action revolvers they let go by the wayside.

I, for one, wouldn't mind paying less than a king's ransom for an Anaconda.
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The problem is that only you and about a dozen others feel that way. If there were a market, and a way to build new guns and sell them for less than the collector prices on old guns they would do it. Everything eventually fades away. Doesn't mean anything about it was bad, but time marches on. Colt hasn't.
 
Colt would start making revolvers again IF people were lining up willing to pay the $3000-4000 they would have to charge for them.

And if people are willing to pay the kind of money they would have to charge, they can buy a vintage one NOW. And likely get a better made revolver.

I can see exactly what would happen, Colt would build a revolver that cost 3x as much as a Ruger, or 2x the price of a S&W and the whining would be non-stop. All the guys that said they'd buy one in a heartbeat would be saying "Oh, I meant if they built one for under $1000, not $2,000".
 
As a Colt owner, I do agree that they are an "old guard" type of company. They are running about 5 years behind the curve in the AR market. Lets face it, with all the fancy, quality parts available nowadays from dozens of reputable companies, Colts had a hard time selling $1000 "entry" level carbines. At the $800ish price point I can see buying a Colt (and did, 6720 for $830OTD:D).

With the ability to slap together a Colt level AR with a good free float tube, aftermarket trigger, stock/grip, sights, etc for about the same price as a no frills Colt carbine, its hard to argue for the Pony.:uhoh:
 
I am actually almost amazed that they are still in business. Colt has been a company you wouldn't want to buy stock in for many years. But this is America. If they go under someone will buy the name and trademark and it will go on. Those old rollmark stamps will be worth a fortune.:scrutiny:
 
I drive by the blue dome of the old Colt building every morning on my way to work, and it reminds me that the company has been living in the shadow of its former self for quite some time now.

I think the company will need to reinvent itself to survive, as the government contracts won't last forever. Its pretty ironic to me that this part of New England is really the cradle of firearms manufacturing (Colt, Ruger, Smith and Wesson, Stag Arms, the (original) Springfield Armory...) yet the politicians and a good chunk of the population is downright hostile to gun ownership. Perhaps they would do better elsewhere where they would have more community/government support, not to mention lower business taxes. Sad to see really.
 
All I can say is that I recently acquired the 2015 re-issue of the S70 Colt Gold Cup National Match.... paying a price at the high end of production 1911s, but still several hundred below semi-custom 1911s (DW, etc...) and am VERY happy with it. It locks up tight, functions 100%, looks great and is a tack driver.

Colt has reportedly done a lot of things wrong over the years, but my personal experience with this GC and a S80 Commander purchased ~5 years ago have both be excellent. So imo, they're doing a lot of things right.

I think the problem is trying to make money in a very high cost state with a union workforce and not having the money to move their operations to FL as previously planned. Trust me, they're not the only New England manufacturer doing business in a highly competitive market that is struggling to make it.
 
Bad Management hurt more than a union workforce

The UAW problems were bad and the five-year strike was stupid. No argument there. But that strike's been over for more than 20 years.

But the source of Colt's problems seems to be almost incredibly bad management, from financial moves that have left the company saddled with a mountain of debt to products like the All American 2000 to a CEO that said stupid things like favoring federal firearm permits for individuals. This last produced a huge boycott of Colt products.

There is no shortage of right-to-work states that would welcome Colt. However, I don't know how much they would save in labor costs: it does take experience and skills to build a decent firearm and I am not sure why we have such a problem with workers making decent wages wherever they live. (Not looking to start a fight over that; just making an observation.)
 
Winchester's a branding only- not a company.
Winchester-branded firearms products are handled in the US by Browning for their parent company, FNH.

Winchester-branded ammunition is done by Olin Corporation.
Denis
 
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I'll be keeping my Colt AR. When they get bought out by Cerberus/Freedom Group and quality plummets, my 6720 will be worth a small fortune as a collectible.:D
 
I make no predictions for Colt any more. What will be will be..... they need to move their operations to a lower cost manufacturing environment. Building revolvers is not the answer to their problems. Colt will not be able to out compete S&W in the premium revolver market.
 
I am actually almost amazed that they are still in business. Colt has been a company you wouldn't want to buy stock in for many years. But this is America. If they go under someone will buy the name and trademark and it will go on. Those old rollmark stamps will be worth a fortune.
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I could not have said it better. The current company, IMHO, is almost certainly doomed but the trademark isn't going anywhere.
 
Cooldill said:
I'd love that too, but do you have any idea how much it would cost to re-tool for double action revolvers? As is, I believe Colt has more or less completely divested itself of said tooling, and even most of it's workforce experienced in revolver making. It would just be too much money, and with autopistols ruling market demand these days, there just wouldn't be enough wheelgun enthusiasts like us for Colt to make a profit.

It just won't happen, unfortunately. :(
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I'm not a machinist and will not pretend to be one, but can't a cnc machine produce almost anything? It just seems like it wouldn't be that hard to set one up to make a revolver. But again, not a machinist, I'm speaking from ignorance.
 
I'm not a machinist and will not pretend to be one, but can't a cnc machine produce almost anything?
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Yes and no. Smith & Wesson is pretty much doing that now, and making smaller parts using MIM (Metal Injected Molding) technology. This is producing functional guns, but not with the finishing touches both companies were famous for. Also in both cases the initial tooling costs are very high.

What Colt fans want is old-time hand fitting and finishing, at a price that's competitive with today's more automated methods. That's something that isn't likely to happen.

It just seems like it wouldn't be that hard to set one up to make a revolver.
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It depends on what kind of revolver you have in mind, but if you want to duplicate Colt's best pre-1990's products you can't do it with production shortcuts.

Last but not least it would cost millions to get set up with CNC machines (not a machine) to address a limited market (revolvers isn't where it is these days), by a company that is deep in dept, and broke.
 
they wont be saved by making revolvers
that would be a very small segment of their business
they need government contracts (whichever government)
or they need to sell off a crapload of capital assets and drop back to a smaller entity. ( ill take bets that they actually lease their production machines, so they arent even a asset)
 
The problem for Colt in the revolver area is they have no tooling any more. They have little man power experienced with revolvers. But the biggest problem for Colt with revolvers has two names..... Smith & Wesson and Ruger. I doubt they would make a product that is as good as either company. Hence, why bother? Stick with what they know and try to expand production and their market share within their niche. Keep the quality up.

I don't see a reason why Colt could not make a small 22LR semi-auto. Patent infringement? Tell Ruger that with their SR22P; they're still making them.
 
Im still a fan of the le6920 and 1911s. I own a few and hate to see colt gone forever or worse owned by folks that took over remington and such.

Now if colt would just tighten up the grip safety so they don't flop around and rattle like a noisemaker.....;)

As for revolvers...they would sell to the few not the many, imho.
 
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