COLT Going Away?

[crbutler]

The freedom group is not totally pooched.

Dakota arms is part of it, and it seems to me that the quality of work is just fine there (the quality of wood, well, they have played games there... but they always did.)

I never thought much of AAC. Overpriced and had a bunch of tactical writers (Fortier to name one...) in their back pocket. I didn't think much of their stuff when I saw it. The owner bailed to get a payday.

Bushmaster was plain and simple, the owner (who is now Wyndham...) selling out to get his cash also. I think they had underlying issues on what was going on there which were going to cost them a lot of dough long term, so he bailed and now is taking the best folks from there into his new venture. Personally, I wouldn't be too upset if Bushmaster went away anyhow.

DPMS, that also was Mr. Luth wanting to sell out for big money.

I think its pretty obvious, the owners of these companies all wanted out, wanted their money, and while they may have had some loyalty to their employees, not enough to take less cash for their business for it. Most of them signed noncompetes and were expected to run the places for a while after the sales.

Remington always was run for bottom line. Couple that with the insane demand that all things gun have had thanks to the current administration, and obviously corners would be cut.

The president of Cerebus is a big hunter who's favorite hunting rifle is a Rem 700... But he is a money guy, not a gun guy with a tool and die background.

A big part of Colt's problem was the company divided into their civilian component and the military part. This was a gamble as at the time it looked like all the AR makers were going down due to Sandy Hook. They thought with all the stars they had on their consultant's lists that there was no way they could lose the M4 contract... Well... Now they are in a bit of a bind. Based in a gun unfriendly state, with the civilian division making all the money, but also the one with all the debt (planned bankruptcy when civilian AR's were banned..) and the military end without contracts....

[onebohemian]

Chap 11 tomorrow. http://www.wsj.com/articles/colt-defense-to-file-for-chapter-11-bankruptcy-protection-by-monday-1434310925