Gun maker Colt files for bankruptcy amid tough US market

[cronus]

http://www.bbc.co.uk/news/business-33130987

Gun maker Colt files for bankruptcy amid tough US market

Connecticut-based gun maker Colt Defense has filed for bankruptcy protection, as it grapples with a heavy debt load.

The company says it plans to continue its normal business operations during its restructuring.
The company is struggling with more than $350m (£225m) in debt, as well as waning sales.

Colt's fortunes were hurt by a loss of a contact in 2013 to supply the US army with its M4 assault rifle.

Keith Maib, the company's chief restructuring officer, said in a statement: "Colt remains open for business and our team will continue to be sharply focused on delivering for our customers and being a good commercial partner to our vendors and suppliers".

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[pErvinalia]

China can make Merka's guns. It makes everything else for Merkans.

[laklak]

Problem with Chinese guns is you shoot someone and an hour later you have to shoot them again.

[DaveDodo007]

Wont someone think of the cowboys.

[Svartalf]

It will be propped up again, it's too iconic to fall

[pErvinalia]

This is a setback for freedum!

[Xamonas Chegwé]

Now they know what it feels like to be looking down the barrel.

[JimC]

Problem with Chinese guns is you shoot someone and an hour later you have to shoot them again.

[klr]

I thought the Belgians and the Italians already made most of the guns for the US market?

[Forty Two]

It's Chapter 11 reorganization, which basically means they've been planning this for a few years -- they amped up their debt load, and pulled as much money out of the company as they could, and now they're going to stiff their vendors, employees and creditors of as much money as they can, before they reopen their doors. Rest assured, someone is cashing out.

[Svartalf]

I thought the Belgians and the Italians already made most of the guns for the US market?

they are, one reason for the whole matter is that Colt missed yet another major contract.

[Svartalf]

It's Chapter 11 reorganization, which basically means they've been planning this for a few years -- they amped up their debt load, and pulled as much money out of the company as they could, and now they're going to stiff their vendors, employees and creditors of as much money as they can, before they reopen their doors. Rest assured, someone is cashing out.

Was THAT ever in doubt?

[mistermack]

Colt should concentrate on the massacre market.

Bring out a new model, the orphan-maker.

[Svartalf]

you're not funny

[Forty Two]

It's Chapter 11 reorganization, which basically means they've been planning this for a few years -- they amped up their debt load, and pulled as much money out of the company as they could, and now they're going to stiff their vendors, employees and creditors of as much money as they can, before they reopen their doors. Rest assured, someone is cashing out.

Was THAT ever in doubt?

Nope. It's just the sad state of affairs in the US. Let a consumer file bankruptcy, and everyone is up his arse -- can't discharge student loans, etc. Force them to take "credit counseling" classes that cost money (and are run by companies owned by guess who? Credit card companies), and place caps on when a person is eligible for Chapter 7. Force as many into Chapter 13 as possible, and put them under multi-year bankruptcy payment plans that enslave them in debt. Of course, a corporation hires a team of bankruptcy lawyers and accountants, plans it out for a couple of years, and screws everyone.