Friday, June 5, 2015
Firearms Friday: Colt Bankruptcy
Anyone who has served in the military are familiar with Colt. Anyone who has some experience with firearms is probably familiar with Colt as well. Heck, if you ever watched a Western you probably recognize the name. Overall, it is safe to say that the Colt brand remains in the pantheon of firearms manufacturers. However, the question now is how long will the company hold that revered place in the industry?
The fact remains that of the countless veterans with whom I have spoken that remain involved in the firearms community the majority of them refuse to purchase a Colt for the simple fact that there are better firearms on the market (especially for the price). Heck I can even remember the issues I had with my service rifle on the range and thinking to myself at the time “how do they expect this to hold up in the field?” It has become pretty clear that while the name remains near the top of the echelon, the actual firearms that are being produced fall far short of that reputation.
While there is no hard evidence to back up this assertion, it seems as though this is a significant contributing factor to the ongoing financial struggles that Colt continues to face. With contracts being cut and a variety of other options in the civilian marketplace, Colt is finding it difficult to compete and remain financially solvent. The current bankruptcy mumblings have been part of the everyday operations of the company for the past decade and now might finally be the time when the hammer falls.
The poorly structured company has nearly exhausted their resources even going so far as mortgaging many of the patents that the company holds. When the reserves are depleted and the revenue streams begin to dwindle down to a trickle, it won’t be long before the company faces the inevitable. While I don’t want to see the company go under, at some point you have to come to the realization that maybe it is for the best. The products they are putting out into the marketplace are not Colt quality like production runs in the past. It might be time for them to step aside.
Given the power that the name and brand still holds in the mind of consumers, even a bankruptcy will not spell the end for Colt. It is almost guaranteed that the brand will meet the same fate at Springfield Armory and be reborn in a completely different company and corporate configuration. It may not be a bad way to go.