by Joseph P. Tartaro | Executive Editor
Colt Defense LLC on Dec. 16 announced that the US Bankruptcy Court for the District of Delaware has confirmed the company’s Second Amended Joint Plan of Reorganization. The plan received full support from all of the company’s stakeholders. Upon completion of the restructuring process, which was expected to occur in the following weeks, the plan will significantly restructure and reduce the company’s debt, improve its capital structure and enhance its liquidity profile. The company will also have a new lease for its West Hartford Facility and the Plan reaffirms the Company’s strong relationship with the UAW.
According to the Colt statement, the plan finalizes a global settlement of all outstanding issues in the cases, achieved through a consensus reached among Colt’s key stakeholders, including a consortium of Colt’s secured lenders, Morgan Stanley as the lender under Colt’s pre-petition and post-petition secured term loan facilities, the official committee of unsecured creditors appointed in Colt’s bankruptcy cases, Sciens Capital Management and the landlord at the company’s West Hartford facility.
In conjunction with the confirmation, Colt also announced that it has reached an agreement with the United Auto Workers Union that resolves issues relating to retiree medical benefits.
“Today we achieved the last important milestone on Colt’s path to emerging from Chapter 11 as a stronger and more competitive company,” said Dennis Veilleux, president and CEO of Colt Defense LLC. Mr. Veilleux added, “We greatly appreciate the dedication and support of our extraordinary employees during this process, as well as the support we received from our financial stakeholders, Sciens Capital and our customers and vendors.”
Shortly after the Chapter 11 announcement, Colt unveiled several new products. (See related story elsewhere in this issue.)
Colt has supplied civilian, military and law enforcement customers in the United States and throughout the world for more than 175 years. Its subsidiary, Colt Canada Corporation, is the Canadian government’s Center of Excellence for small arms and is the Canadian military’s sole supplier of the C7 rifle and C8 carbine. Colt operates manufacturing facilities in West Hartford, CT and Kitchener, Ontario.
In other firearms business news, Smith & Wesson and Brownells announced resolution and clarification of any reported problems associated with the Brownells/Apex Dream Gun® Issue.
James Debney, president and CEO of Smith & Wesson, said, “I would like to clarify that we fully support the Brownells Dream Guns® Project and we appreciate that it showcases the many ways in which our customers—loyal fans of our M&P brand—can choose to customize their M&P firearms. Our decision to contact the companies that worked on the project was intended to protect the trademarks that support the M&P brand. When a product bears the Smith & Wesson and M&P trademarks and is purchased new with our lifetime service policy, we want to be sure that the consumer knows it has passed our demanding quality standards. In our efforts to protect that promise and to preserve the brand that we and our customers cherish, we did not fully understand the intent of the Dream Guns® Project and we overlooked the opportunity to convey our enthusiasm for the creativity and innovation that Brownells and all of the companies involved have demonstrated. We look forward to seeing the firearm on display at the upcoming SHOT Show in January and at the NRA in May.”
“Yesterday I spoke with James Debney, president of Smith & Wesson, who called me regarding the M&P® Brownells/Apex Dream Gun®,” said Matt Buckingham, Brownells president. “It was a simple misunderstanding about the intention of the project. He made it clear that Smith & Wesson is excited to have their product featured in this fun and unique way. For our part, we are honored to include it in our Dream Gun lineup. Smith & Wesson is a legendary brand in this industry and we continue to be proud partners with them.”
Brownells Dream Guns® are inspirational firearm builds to provide customization options and ideas for customers who may wish to personalize their own firearms. The guns are not sold as is, and are used on Brownells’ website and at tradeshows to display Brownells’ wide selection of items available to customize firearms. To learn more, view the company’s full listing of Brownells Dream Guns® online on the Dream Gun Page at: Brownells.com.
Milestones, mergers, acquisitions
In 2016, Mossy Oak will be celebrating the anniversary of the company’s founding 30 years ago. During three decades, Mossy Oak has grown from its simple beginnings as a camouflage company to the embodiment of the outdoors lifestyle. With over 1000 licensees and partners, Mossy Oak not only provides hunters and outdoors people with effective concealment but with a symbol of their love of the outdoors in their daily lives.
“Mossy Oak sprang up out of my love for hunting and being obsessed with getting closer to critters,” said Toxey Haas, founder and CEO of Mossy Oak. “I never dreamed that we would be where we are today, 30 years later.”
“Camouflage has come a long way in 30 years and is being used for more than just hunting these days. We’re honored to be a part of that trend, and we know that without great partners that have come alongside us throughout the years, we wouldn’t be celebrating this milestone,” said Bill Sugg, president of Mossy Oak. “The outdoor industry as a whole has been vital to our success. Without retailers and manufacturers, writers and TV support, conservation partnerships and ProStaff, we simply wouldn’t be the success we are today.”
Ares Armor on Dec. 16 announced a corporate name change to American Weapons Components, Inc.™; (AWC™). The company’s news release said the new name realigns the brand with its core business of providing high quality gun parts and accessories to firearms enthusiasts nationwide, while emphasizing the company’s long-standing commitment to US manufacturing. The name change was effective immediately and will be implemented across all products and brand platforms by early 2016.
“The new name, American Weapons Components, ideally represents where we came from and the future that we envision,” said Bryce Stirlen, president and CEO, American Weapons Components, Inc. “We are more committed than ever to protecting and preserving the Second Amendment, which is the driving force behind everything we do. AWC has carved out a market niche providing firearms enthusiasts with superior components that represent the highest quality and value for their custom builds. American-made products are also very important to our customers, so it’s a source of great pride to convey our dedication to US manufacturing in our new name.”
AWC’s research, development and manufacturing departments are located in its San Diego County, CA, headquarters, enabling faster innovation and adherence to strict quality standards. The company will continue to specialize in rifle and pistol components, including 80% lower receivers, barrels, compensators, jigs, rails, rifle kits, safety selectors, stocks, upper receivers and more. The company will also continue offering made-to-order nylon tactical gear that is individually hand sewn in-house, including chest rigs, combat packs, plate carriers, pouches, rifle bags, rucks and more.
The name change is part of a recently announced corporate restructuring that will refocus resources and simplify business processes to support the company’s core firearms components business and yield improved efficiencies in customer service. The restructuring is expected to be complete in the first quarter of 2016.
Scopecoat® LLC, makers of patented optics protection for transportation and storage, has announced its acquisition of Slideboot, a handgun slide cover company previously owned by Gunhugger Enterprises, LLC of Phoenix, AZ.
Slideboot was developed to eliminate the need for gun rugs or traditional plastic boxes when transporting handguns to the range, in the vehicle or while in safe storage. The soft neoprene cover protects the slide and sights from dings, nicks and scratches. The form fitting Slideboot saves space in the range bag or safe and, as an added benefit, the neoprene is not affected by oils so you can clean and treat your firearm and store it in a Slideboot without oils migrating to other surfaces within the safe. The custom fit Slideboot stretches onto the slide easily and can be removed quickly for full access to the weapon.
The Slideboot line consists of seven custom sizes supporting the majority of striker-fired and 1911 handguns available. Made from high quality neoprene Slideboot comes with a variety of colors and can be customized with logos to support agency, association or club activities.
CamelBak CEO Sally McCoy recently announced that she is leaving CamelBak effective Feb. 1 to spend more time outdoors and with her family.
McCoy spoke exclusively with SNEWS about her departure: “You know the old saying ‘Leave your campsite better than you found it?’ I feel 100% confident that I’ve done that with CamelBak.”
In a 2006 SNEWS interview, McCoy laid out her vision for the company: “CamelBak is a category creator and we are not currently acting like one. That will change. Everything CamelBak should do should be about expanding and innovating hydration and essential gear. We own the water category and we need to run the company accordingly.”
By any measure, McCoy has done just that. A few years before she took over the helm, the company was valued at $210 million according to a Wall Street Journal article. During her tenure, CamelBak has gone through two private equity sales: In 2011, it was acquired by Compass Diversified Holdings for $257 million and in July 2015 Vista Outdoor purchased it for $412.5 million. The growth is largely due to innovations spearheaded by McCoy’s team, SNEWS said.
“I’ve accomplished what I’ve wanted to, and it’s a good time to step aside,” she told SNEWS. She’s looking forward to taking some time off, getting in shape, and getting outdoors with her 12-year old twin boys. “Being outdoors will scour my thinking clean,” she says. “It’s an interesting time for brands, retail and conservation. I have lots of passion and energy, and I have to figure out where to take it next.”
