Will Colt survive the turmoil?

Media reports suggest that legendary gun name Colt is on the brink of bankruptcy.

As other major names like Smith & Wesson, Sturm, Ruger and Freedom Group (which includes Remington), have enjoyed a bumper time during 2013, which continued into the first part of last year, it seems that Colt has missed out on the gun boom.

The New York Times has reported that, not only has the one-famous gun manufacturer struggled as others have prospered, but it may end up filing for bankruptcy.

Indeed, it is reportedly pursuing a two-pronged strategy to remain in business, either by restructuring its debt with bondholders to undertaking what is known as a pre-packaged bankruptcy, helping it emerge stronger in the long run.

Some of its difficulties can be traced back to dwindling military activity in Iraq and Afghanistan, with the resulting lack of military contracts for Colt to fall back on.

It had been the sole manufacturer of M4 carbines and M16 rifles for decades but subsequently lost out to FN Herstal, the manufacturer of Winchester and Browning firearms, and to Remington.

When it did look again at the consumer market, Colt mostly focused on its classic revolver handguns until the 2010 launch of its R1 1911 pistol which, although a hugely successful market category, appears to have proved too little too late.

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