Colt

[Buckeye 50]

Guys;

I haven't been in their boardrooms but have plenty of others.  I STRONGLY SUSPECT that where Colt is today (unfortunately) is solely of their own doing.  You have no idea how many big decisions at the senior management level are based upon bias and ego rather than current and future market conditions and reality.

I can easily see some of them stubbornly saying the 1911 is "America's Gun" and will be around and purchased by gun owners forever.  The correct answer was and is, "Yes, they will be PART of the market but how much of the market?"  I bet anything they convinced themselves it would remain mainstream and told each other what each other wanted to hear rather than reality.

This kind of mis-management regarding market trends that lead to trouble and bankruptcy often are years or decades in the making - this also manifests itself in little reinvested in R&D.  Unfortunately, I believe they (Colt) are so far behind that catching up is impractical.  Same exact thing goes/went for Blackberry phones.  At one time, THE market product leader.  They went silent in R&D for some reason and when they tried to kick start things they were GENERATIONS behind, not just a few years.

The fat lady is on stage clearing her throat.

Pat

[10mmfan]

But blackberry still has one thing going for them, security.

[Bruno747]

Oh well, I guess my gold cup delta elite's brothers might finally crack $3k on gun broker. 

[Tomcat 10]

 I hate to see any American Company go under .  Colt is like other companies that have gone down the tube , they didn't keep up with the times .  Most guns the size of a 1911 have a double stack mag ., for one thing , and they are priced better as well .  I always did think Colt Products were over priced .  The only 1911 I have now is a Para Black Ops 14-45 .  I did have a Colt 1911 , I bought back in 1968 , but there are a lot better options out there now a days .  Kimber is another one I think is way over priced , for what you get .  If you are over priced , and you don't keep up with the times you will go under .

[Geeman]

They made it because they contracted with Uncle Sam.  That is not a regular marketplace and they are following so many similar companies down the drain.  They simply don't need to be competitive as long as the contracts keep coming in.  When Sugar Daddy goes away, reality is harsh.

Of course, Uncle Sam might ultimately bail them out so the execs can kick back a bunch of bucks to the politicians.  After all its only money and is just a drop in the bucket, as the story goes.

Greg

[sqlbullet]

I kinda agree Geeman.

Here is where I have a hard time with that with Colt's situation.

They aren't making some obscure product on contract that only has a single consumer.  Colt was making the most popular rifle in America right now.  Lost the contract, big deal.  Use all the money they banked from the years on the lucrative contract, and revitalize their consumer marketing channels.

Remington geared up in huge way for a piece of the m-4 contract, and then didn't get it. They did a quick turn and bingo, R-15's for the masses.

As we all were complaining the other day about a Rifleman article on 10mm.  They reviewed 4 1911's in 10mm.  Why? Because 1911's are HUGELY popular right now.

While I agree that large contracts can result in suppliers that are victims due to the contract precluding diversification, Colt did not have that problem.  Their business is just plain atrociously managed for many years.  It is too late for them now, but 5 years ago better management could have saved them.

[PalmBeach]

While I agree that large contracts can result in suppliers that are victims due to the contract precluding diversification, Colt did not have that problem.  Their business is just plain atrociously managed for many years.  It is too late for them now, but 5 years ago better management could have saved them.

Atrociously managed is an understatement. What ownership did was rape every bit of equity from this company. They used and abused the cash flow of Colt and sucked it dry.

Now there is a fight between current vultures . . .  ownership and all the bondholders, which is another group of financial vultures. It should be interesting how this all plays out.

[my_old_glock]

While I agree that large contracts can result in suppliers that are victims due to the contract precluding diversification, Colt did not have that problem.  Their business is just plain atrociously managed for many years.  It is too late for them now, but 5 years ago better management could have saved them.

Atrociously managed is an understatement. What ownership did was rape every bit of equity from this company. They used and abused the cash flow of Colt and sucked it dry.

It is called Narcissism. It has become the American way. They believe they are perfect, can never make a mistake, and are worthy of all the money in the world.

Now there is a fight between current vultures . . .  ownership and all the bondholders, which is another group of financial vultures. It should be interesting how this all plays out.

The lawyers will win.



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