Legendary gun manufacturer Colt emerges from Chapter 11 with a strong outlook on the future.
“It is with profound appreciation to all of our key stakeholders,” explains Dennis Veilleux, President and CEO of Colt, “that we share that we have completed the restructuring process and are emerging from Chapter 11 with a solid capital structure, significantly less debt, and much greater financial flexibility.”
The announcement on Wednesday had also stated that they have lowered its debt by $200 million, and had found $50 million of new capital.
Colt firearms have been a piece of American history as far back as the 1890s, when the Texas Rangers used the Colt Revolver in the Wild West. Since then they have been used by the military in both World Wars, Korea, and Vietnam.
Colt firearms are still being used by the military and many civilians love their guns including the well known AR-15s.
So how did an iconic gun manufacturer end up filing for bankruptcy protection?
Colt made most of their sales through the military, and with the war in Afghanistan and Iraq easing, sales were down. In the civilian markets, there is a trend towards smaller, easy to conceal handguns and it seems they just did not keep up with competitors.
It is ironic that financial troubles are partly due to their inability to produce handguns people want, since this is what the Colt brand and legend was built upon. Here’s hoping the American gun company can pick up the pieces and restore themselves to a brand everyday users start to buy again.