Legendary gunmaker Colt files for bankruptcy

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The legendary American gun maker Colt Defense has filed for bankruptcy, but says that will not affect its business operations. Colt, which has been making guns for 160 years, on Sunday, June 14, 2015, sought bankruptcy protection in Delaware.

NEW YORK  — The legendary American gun maker Colt Defense has filed for bankruptcy, but says that will not affect its business operations.

Colt, which has been making guns for 160 years, on Sunday sought bankruptcy protection in Delaware.

The company, based in West Hartford, Conn., said the filing with allow an “accelerated sale” of its business operations in the U.S. and Canada.

Sciens Capital Management, an investor in Colt, has agreed to purchase the company’s assets and assume its liabilities.

Colt said it “intends to continue its normal business operations through the accelerated sale process” and will keep its management team in place, including CEO Dennis Villieux.

The company has been struggling financially and missed a $10.9 million interest payment on its debt in mid-May.

“While entering Chapter 11 protection in the absence of a consensual agreement with our noteholders was not our preference and we do not take it lightly, we are confident it is the best path going forward,” said Keith Maib, chief restructuring officer of Colt Defense, in a statement.

He said the filing will allow Colt “to restructure its balance sheet while meeting all its obligations to customers, vendors and employees.”

The process is expected to take 60 to 90 days, said Colt.

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7 comments

  • dg54321

    Eh, just like Remington, they made some very questionable business decisions. In this environment, all gun manufacturers should be thriving, but Colt has always been overpriced and undervalued in the market.

    • EastboundAndDown

      True. Still the firearms industry is thriving. Wait for perry to attempt to claim otherwise based on his hatred and wishful thinking.

    • dg54321

      And Kimber. And Kel-Tec. And Wilson Combat. And Beretta. And Rock Island Armory. And Browning. And a multitude of others. Good riddance to Colt. If you can’t survive in this thriving sector of the economy (Obama: Best Gun Salesman Of All-Time), you don’t deserve to stay in business.

  • hellomurica

    They must be doing something wrong. Firearms have been selling like hotcakes lately. Hopefully new owners can analyze where the company is hemorrhaging and correct it.

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