Colt Defense LLC has filed for Chapter 11 bankruptcy, according to a June 15 press release. The iconic American arms producer’s restructuring will mitigate the large debt and a lost contract affecting the company for the past several years.
Colt previously filed for bankruptcy protection in 1992, emerging with fresh financial backing two years later.
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"Colt's emergence from Chapter 11 means the company will be better able to compete for military contracts, officials said," Associated Press reported on September 30, 1994. Colt lost a major contract in 2013 when FN Manufacturing outbid Colt to supply M4 rifles to the United States Army.
Sciens Capital Management LLC, Colt’s current sponsor, is the lead bidder in Colt’s impending asset sale.
Colt has existed through various corporate changes for the past 160 years. Samuel Colt founded Colt's Patent Fire Arms Manufacturing Company in 1855. The firearms manufacturer supplied Union soldiers with rifles and handguns through a government contract.
While Colt’s sale and future are uncertain, Chief Restructuring Officer Keith Maib issued a statement to reassure consumers they would not be affected.
"Importantly, Colt remains open for business and our team will continue to be sharply focused on delivering for our customers and being a good commercial partner to our vendors and suppliers," Maib said in the statement.