The most well known firearms maker Colt, founded in 1855 by Samuel Colt, is on the edge of disappearing from America’s gun stores. Samuel Colt had been making firearms since 1836. Colt the maker of such guns as The Peacemaker, the Colt Walker, M16 and AR-15 was unable to make an interest payment of 10.9 million dollars. (Colt did not develop the M-16 or AR-15, they were primarily manufacturing them). They have a grace period of 30 days to make the payment. That grace period ends on June 14th. Colt is trying to work out a restructuring deal to keep the company from going under, but bond holders refuse to make any deal that results in a loss. That’s because the current bankruptcy law would allow them to recover 100% of their money should Colt go under.
Colt has fallen onto hard times as police departments across America have made the switch from Colts to the lighter Glock. It appears that their only hope to stay in business is if a deep pocketed company like Smith and Wesson would but them out. That seems like a long shot, since Smith and Wesson could wait and purchase just the rights to the name. That way they could avoid taking on the liabilities of Colt and allow them to manufacture the guns in their own factories, since in all likelihood, they would want to make guns with more commercial appeal. They could also buy individual manufacturing plants from Colt without buying them all.
It’s sad to see the most famous gun manufacturer disappear. Even if they are bought out, it really won’t seem the same. Colt is a victim of their own standards. The competition has followed the market and found a way to make a much lighter pistol that would still accommodate a high capacity magazine. This has become very important as more and more women are purchasing guns for protection.
Progress can be a sad thing.
Courtesy of Red Statements.