The American brand of firearms Colt is about to close its doors after more than a century and a half of activity. In fact, the company has declared its business 'fragile' and has entered receivership.
Colt Defense was founded in 1855 by Samuel Colt and supplied the US Navy with M4 rifles until 2013. The decline in supplies to the US government, the decline in sales to foreign countries and the failure to adjust production to a demand that has changed towards sporting rifles and commercial pistols they cornered the group.
The receivership filing estimates the group's assets and liabilities to amount to up to $500 million. The creditors should be around fifty. The company plans to go up for auction by August 3, with an initial purchase offer from private equity group Sciens Capital Management, already one of the company's lenders.
