In a move that had been a long time coming, Colt Defense LLC filed for bankruptcy on Monday.
It takes an epic level of incompetence for a gun company to lose money in the era of Obama, but Colt was obviously up to the challenge.
Colt has struggled in recent years with supply-chain and working capital issues, a slowdown in rifle sales and its 2013 loss of a key contract to supply the U.S. Army with the M4. As a result of some of its operational issues, the company has had accounting problems that caused it to revise prior years’ reported financial results and miss a creditor’s initial filing deadline for an annual report, according to regulatory filings.
Ask gunnies what the problem with Colt is, and they’ll tell you a disinterest in the civilian market compared to pursuing government contracts, as well as a desire to charge premium prices for ordinary guns. That, plus the “felonious mismanagement” is what did them in.
A shame. With competent management, the makers of the AR-15 should have been making money hand over fist the last six years…
