Bane's Blog says Colt is SOLD

[vynx]

I'd like to see the colt .380's made again
The gov't model or Mustang +2 are great little back-up guns

Also, the Pony would be nice but I think I heard that Colt lost a patent infringment case on that model.

 

[Jeff Timm]

Hmmm, maybe they'll have a real, live marketing team under their new ownership!

I predict Beretta buys the commercial side.

+1 with a bullet!

Geoff
Who wishes a real nasty humored billionaire would buy Colt's and start counter sueing all those assorted shysters who raised prices on guns.

 

[bowfin]

Before we write off Colt (or for that matter, Winchester), does anyone remember when Savage was at death's door?

I remember reading an article about the CEO who came into Savage at that time, he said the whole place had a sad and dreary look: Burned out sign in front, burned out people in back. As he walked through the plant, he was wondering why it looked so dreary. He looked up at the big windows next to the ceiling, and saw they were absolutely filthy.

(Paraphrased as well as I can remember it) "I guess no one cares. Well, we can't afford raises, we can't afford R&D, but we have soap and water and a bucket, and at least we can go down with clean windows. He found a bucket and a latter, and climbed up and did a window or two before he had to stop. When he came back out on the floor, all the windows were being cleaned or had been cleaned. The recovery had begun...

The other thing this guy did was to cut the products down for the time being to the only thing he thought that they made that was worth making, the Savage 110. Rick Jamison did a piece on the Savage 110K, saying it looked ugly but shot beautifully, and that started sales going up. Savage then started to overhaul their line gradually, adding back the discontinued models, and acquiring the Canadian .22 rifle maker for that line.

The only flop in the recovery was the reintroduction of the Savage 99. IMHO, it was a mistake not to make that gun with the rotary magazine, top tang safety, cartridge counter, and some more exotic calibers, like .358 Winchester, .250 Savage, .284, etc. If you are going to make a Model 99, go all out, and make it a distinct choice from a vanilla bolt action.

Apologies if I got a little off topic, but the other thing people forget are the people working at Colt. Employees can be an asset, and they may be chafing at the bit to get their company back on top of the heap.

Here is a partial list of some others who resurrected:

Kimber, which was mentioned earlier as kicking Colt's rear end, is also a resurrected company.

My own idea for Ithaca's saving product was a model of their WWII trenchgun, a remake of one of the most valuable American WWII small arms.

I know, off topic again

 

[Harry Tuttle]

This was posted back in 1999 on TFL:

Colt Manufacturing, Inc., plagued by vendor-creditors and
double-digit lawsuits, including those from several major
US cities, is working busily behind the scenes to stiff vendors
and the cities, along with their own union employees. Colt
has long wanted to move out of their antiquated factory in
West Hartford, which has been plagued with union problems
since the early '90s. CMI (Colt Manufacturing, Inc.) is owned
by New York banker, Donald Zilkha, who still maintains his
Iraqi citizenship. Unfortunately, while Mr. Zilkha owns CMI,
he *does not* own the name "Colt". That belongs to the
State of Connecticut. The State gained ownership of
the name when the companies previous owners went
bankrupt in 1994 owing the State of Connecticut pension
fund $11,000,000.

Zilkha's arrangement with the State required him to keep
the ailing company in Connecticut for ten years, which
included the manufacturing of any gun that had ever been
produced in that factory....or pay the State $11,000,000
they lost in the previous bankruptcy. Apparently Zilkha
has come up with an exit strategy that will allow him to
both move the company's manufacturing to friendlier,
non-union, ground and leave the companies creditors
sucking wind. Zilkha is now negotiating with the State
to finally buy the name "Colt".

The plan calls for a breakup of the existing company into
four separate legal entities. The majority of the Colt pistol
line will be eliminated and the remaining models, including
their popular single action revolvers, Pocket 9, Pony,
Defender and the new Officer's carry will be moved to a
new company, "Colt Classics", in Springfield, Mass.
This will serve as their "custom shop", as well as handling
consumer gun sales. No need to run out panic buying a
Colt product one of these products listed above is what
you're interested in.

Colt's military weapons, the M4 carbine and the M16, will
be moved to another Colt Holdings owned company,
SACO Defense in Maine. They will undoubtedly continue
the production of the AR15 as well, but it will most likely
be sold through the "Custom Shop"...no doubt at a higher
price.

CMI, the current corporation, with all it's outstanding debts
to vendors, along with it's many lawsuits, and union contracts
will file for protection under Federal Bankruptcy statutes
and the factory in West Hartford will be closed, leaving the
many creditors and the 780 employees out in the cold.

Colt headquarters and it's executives, under yet another
corporate veil (iColt), will move to a location near Washington
D.C. to focus on their lobbying efforts which include more
sweetheart military contracts and government grants for
developing their much touted but non-existent "Smart Gun".
Zilkha has been lobbying Democratic lawmakers to *give*
the company $100,000,000 in development money for this
white elephant. Unfortunately for Mr. Zilkha, another company
has recently shown an NIJ panel, who previously gave
Colt $500,000 for Smart Gun development, that they are at
least two years ahead of Colt in the development of Smart
Gun technology. Colt is unlikely to land their government
windfall for Smart Gun development. Colt president, Steve
Sliwa, speaking about the Smart Gun, has publicly stated
that Colt has "bet the future of the company on it". Even Zilkha
political crony, Sen. Chuck Schumer, won't be able to get this
money out of Congress for Colt's non-existent pipe-dream.

Numerous firings over the last few months, which included
several long-time Colt executives and department heads,
indicate that this move is not far off. Colt will continue
negotiating with the cities regarding a settlement of the
numerous lawsuits, but once Zilkha has secured the rights to
"Colt" name from the State of Connecticut, and they complete
their plans to divide up the profitable areas of the company,
safe from creditors, the cities will find that Mr. Zilkha has left
them holding an empty bag. The other gun companies being
sued will surely be the loser in this battle. The ultimate loser
will be the American gun owner.

There is everything in this story for a good novel. A rich
Iraqi oilman/banker, from the richest Jewish family in America
(I only include this as a point of interest...I'm hardly an anti-
Semite as Aaron Zellman will attest to), attempting to control
85% of the world's arms market! Yup...one of those stories
that's just too wild to be believable, but that's what's happening.
Zilkha has already purchased SACO Defence. He tried,
unsuccessfully to buy Remington. He's tried twice, unsuccessfully,
to buy Fabrique National (which also owns Browning and
Winchester). He recently tried, unsuccessfully, to purchase
Vektor Arms, the largest military arms producer on the African
continent. He's still trying to purchase Heckler & Koch, but I
believe he'll fail in that attempt (and if you're interested let me
know and I'll tell you why). He's also trying to buy S&W, which
is also up for sale. He told me, personally, that he planned to
control 85% of the world's arms market (with the rest being
controlled by the Easter Bloc and China). Fortunately, I have
personal relationships with many of these companies and I
know that he won't be successful.

But let your mind run wild with the possibilities of one man
controlling all those assets. And remember that he's the
one negotiating with the cities and the FEDS right now.
He also depends on his military contracts with the Federal
government for 90% of Colt's income. Would he be in a position
to single-handedly negotiate away our rights in return for
exclusive rights to military contracts? You bet. He's proven
that he can do it with the M4 contract. Colt managed to get
around the law and got an exclusive contract for the M4...with
no competitive bidding! What's an M4?...an M16 with another
name, of course. Why? Because Fabrique National *won* the
M16 contract for the Army through the conventional competitive
bidding procedure. This left Colt out in the cold. Again, the
M16 has been 90% of Colt's business for years. So, almost
like magic, a plan is developed to get around FN's legitimate
contract. They simply call the gun by a different name, create
a new "requirement" for this gun, and give Colt an exclusive
no-bid contract for it...for more money than FN charges the Army
for the M16! Now imagine if Zilkha is already this powerful,
what would happen if he also owned FN? And H&K? And
Vektor? And S&W?

Did I mention that Zilkha's a financial supporter (and personal
friend) of both Chuckie Schumer and Frank Lautenberg?
Imagine which way Zilkha leans on civilian ownership of
firearms.

As for iColt and the "Smart Gun", it looks like Steve Sliwa
will ignore my advice, and my promise. Over a cold beer
I warned this "rocket scientist" that a gun that operated on
radio frequency was a bone-head idea. I asked him if he
ever had trouble with reception with his cell phone (DUH!).

I told him that this was such a stupid concept that if he
actually built an RF controlled handgun that I promised
him that I'd develop an RF jammer the size of the average
garage door opener that would be capable of jamming
Smart Guns for a six square block area. Imagine a bank
robbery going down, the cops show up, but none of their
Smart guns will fire Well, it looks like Mr. Sliwa didn't
take me seriously. Guess he didn't get to know me well
enough. Very shortly I'll announce the formation of "noColt"
to produce our RF jammer. This product will be marketed
as a personal protection device. You never know when
you'll find a criminal with a Smart Gun and you may need
to disarm him, right?

The announcement of "noColt" and the "SmartJammer"
should probably throw a stick in the spokes of Sliwa's
venture capital raising efforts on behalf of iColt. We can
only hope so. The Smart Gun is the silver bullet that the
anti-gun movement and the ATF is begging for. Just for
a moment imagine a radio controlled gun, or thousands
of them, that could be disabled by satellite generated
signal with the push of a button in Washington DC. They
won't have to come to your house to take you gun away...
you can keep it. It just won't work anymore. To wild to
happen? Just ask yourself...if they *could* do this, would
they? The technology is certainly there.

 

[Ohen Cepel]

I think Colt could be a viable company.

IF:
1. They have management that are better in tune with the public and make things that people want to buy.
2. They get out of a union. You can't compete paying those wages now. Especially, if your product is of a lesser quality.

 

[mister2]

Quote:
I'll not buy any gun because it has a particular name or logo attached, and I think the same can be said for many of us.

But many will. Thus, the mark has value. How much depends on what is done with it to re-associate the mark with innovation, quality and service.

AKA "Goodwill" in their Balance Sheet

 

[22-rimfire]

Somehow Colt has to be whipped back into a functioning company where the cost of manufacture and the practical market price for their products allow for a proffit to be made or gained. You can blame unions or poor manegement or whatever, but the fact remains that Colt can not survive with just a NAME. That is a fact of business.

Is the name worth something? Sure. But, ultimately the name reflects a long history of producing a quality engineered saleable product. If the product is beyond the market in price, the company will not survive. If the product line is found to be deficient, then the company will not survive.

I want Colt to survive and prosper. I also want it to be in owned by a US company. It can be done.

Is there truth in the "rumors"? Probably. (My guess.) It may take months for the reality to hit the Wall Street Journal.

 

[NineseveN]

This just in, a group led by Hillary Rhoddam Clinton has purchased Colt!!!


Made ya look.

 

[Father Knows Best]

Update?

Did I miss something? Was this rumor ever confirmed or debunked?

 

[Lobotomy Boy]

I work with a number of major companies in regards to licensing trademarks. One company in particular, an American motorcycle manufacturer who shall remain nameless, has been absolutely brilliant at marketing its iconic bar-and-shield logo. In many ways this logo and the iconic brand name are far more important than the actual product being marketed.

With the right marketing the prancing pony could be a similar gold mine. I would love to be working for whatever company purchased the civilian line of Colts right now.

If you compare Colt with two iconic American motor vehicle manufacturers, the bar-and-shield motorcycle company and Chevrolet, which has an iconic symbol--the bowtie--but has been practically retarded in its marketing of that symbol, you'll see that right now Colt is closer to Chevrolet than to the motorcycle company in its marketing approach. Chevy has the iconic trademark, and a long list of iconic vehicles, like the Chevelle 454SS and Camaro 396SS, yet it puts its iconic names on turd cars like the new Malibu and Impala. In my latest book ("Muscle: America's Legendary Performance Cars," in stores everywhere April 1), I quote Jim Wangers, the godfather of the muscle car, about the death of General Motors: "It took GM 35 years to get from the Chevelle SS454 to the supercharged Cobalt."

Colt might not have squandered its iconic status the way Chevrolet has, but it certainly has not even begun to capitalize on it the way like the bar-and-shield brand. Whoever buys the company needs to clean house--fire every last executive, sales person, and marketer--and put smart, dynamic people in charge. They may even want to consider poaching some talent from the motorcycle industry. They could turn a sad, failing company into an American success story the likes of which we haven't seen since the bar-and-shield brand went public in the mid-1980s.

 

[NineseveN]

Lobotomy Boy: excellent points, I agree on all fronts. The Prancing Pony could be a real cash cow if put into the right hands. Colt has failed to innovate much while other, perhaps even lesser companies have blown Colt's home field wide open and stolen the game...but the name and a new marketing strategy combined with some smart ventures into giving the public (not just the military and law enforcement) something new or something modified in a way we haven't seen before could turn things around. I don't think the horsie is going to do it on its own, but with the right factors, it could mean the difference between getting by, being successful or reclaiming top-dawg status.

 

[Lobotomy Boy]

Colt has failed to innovate much while other, perhaps even lesser companies have blown Colt's home field wide open and stolen the game.

Colt does not need to innovate that much. It has to be very selective and shrewd about walking the fine line between innovation and tradition. Again, they could look towards a certain American motorcycle company for a model in just how to do that successfully. The bar-and-shield company I mentioned does a superb job in introducing innovative products when it makes good sense to do so, all the while maintaining its traditional appeal and its historic importance.

While I sometimes find it frustrating to do business with the motorcycle company under discussion because it is a very large corporation, I am continually impressed by its intelligent and shrewd marketing and development. Besides, it is such a good iconic brand that it is worth whatever hoops I have to jump through to have them as a business partner.

 

[Strings]

said iconic motorcycle company also did something very important: they modified themselves to fit with the new "Rich Urban Bikers". A company not willing to try to adapt to it's customer base, is a company that's going down...

Colt has been "adapting" to drive itself into oblivion...

 

[Lobotomy Boy]

Colt has been "adapting" to drive itself into oblivion...

Hence the comparison to General Motors. I just read an article about the new Camaro show car. To create that car the designers had to fight the same battles that Chevy designers had to fight to create the original Camaro concept car in the mid-1960s. The problem then was that GM's systems that had worked so well in the 1940s and 1950s had become counterproductive in the 1960s, yet the company was unable to adapt. The designers working on the Camaro show car for 2006 are still fighting the same antiquated systems that had outlived their usefulness forty years ago. Talk about failure to adapt.