Connecticut-based gun maker Colt Defense has filed for bankruptcy protection, as it grapples with a heavy debt load.
The company says it plans to continue its normal business operations during its restructuring. The company is struggling with more than $350m (£225m) in debt, as well as waning sales. Colt's fortunes were hurt by the loss of a contract in 2013 to supply the US army with its M4 assault rifle. Keith Maib, the company's chief restructuring officer, said: "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".
Colt has been plagued by financial problems in recent months. Last November Colt took out a $70m loan from Morgan Stanley to help make an interest payment. But last month it missed a $10m interest payment.
Last year sales of its sports rifles and handguns fell 30%. The company has a long US history, known for making American firearms for more than 150 years.
The company previously filed for bankruptcy protection in 1992, emerging again two years later.
Colt has bolted
Colt has bolted
“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and weren't so lazy.”