Struggling in recent years, the gun maker was forced into chapter 11 bankruptcy in June.
Contributing to Colt’s financial woes—in addition to falling sales– was the loss of military contracts in 2013 to furnish the M4 Carbine rifles. The loss of American military contracts to FN Herstal out of Belgium cost the company $77 million, the central contributing factor to the company’s current financial state.
Colt says it would have liked to wait a little longer to announce their latest approach for financial stability, but was forced into bankruptcy court by their main creditor. This after ownership having announced the company was on the verge of running out of cash as soon as mid-September.
This comes on the heels of Colt having redesigned and relaunched its signature NATO LE692), similar to the M4. This will hopefully generate interest and boost sales for the manufacturer. This however is considered more of a backup than primary plan.