Colt SUED for Half a Million Dollars over Expanse Production Cutbacks

Colt’s Manufacturing is in hot water: A lawsuit filed in the District Connecticut court by finance company Prestige Capital is targeted at the gunmaker, with the aim of recouping half a million dollars plus legal fees and interest over what the plaintiff claims was a breach of contract during the production of the Expanse Carbine. The suit follows Colt’s scaling back of a contract for the Colt Expanse, a budget priced Colt-branded carbine whose production was farmed out to Bold Ideas, also known as Colt Competition. Colt’s contract with Bold Ideas allowed them to scale back production of the rifles – originally set at 6,000 to be delivered each quarter – but required 60 days’ notice. According to a letter cited in the suit, which was filed at the end of June, Colt scaled back production to 2,400 units per quarter “immediately” in March.

Bold Ideas had sold its assets to Prestige Capital in 2014, in return for an advance. Prestige Capital is seeking to have Colt pay the allegedly missing final payment of $500,000 for the minimum purchase order to Bold Ideas of Expanse carbines, plus interest and legal fees. Bold Ideas/Colt Competition went bankrupt earlier this year. The company originated in Oregon as Chazkat, LLC, and then moved to Texas in 2013.

Thanks to Daniel for the tip!



Nathaniel F

Nathaniel is a history enthusiast and firearms hobbyist whose primary interest lies in military small arms technological developments beginning with the smokeless powder era. In addition to contributing to The Firearm Blog, he runs 196,800 Revolutions Per Minute, a blog devoted to modern small arms design and theory. He is also the author of the original web serial Heartblood, which is being updated and edited regularly. He can be reached via email at nathaniel.f@staff.thefirearmblog.com.


Advertisement

  • Johnsmyname

    Deja Vu. Colt needs a permanent sticky at the top of the forum saying “Breaking News – Colt in Trouble”.

    • Dougscamo

      No, “Breaking News” would be “Colt had a good week!”

      • Johnsmyname

        touche! haha

  • 22winmag

    Firearms not Finance

    • Major Tom

      But without good finances you can’t buy (or make) firearms.

      Gun fundus depletus is a thing ya know.

      • 22winmag

        I suppose the next non-firearm story will be about aluminum foundries or plastics factories?

  • G B

    So if Prestige Capital is the new Bold Ideas and Bold Ideas is Colt Competition, is Colt being sued by themselves?

    • Old Tofu

      welcome to the world of finance

    • Bold Ideas/Chazkat licensed the use of the Colt name/logo when they formed Colt Competition.

    • Gun Fu Guru

      1. Colt made a deal with Bold Ideas for the Expanse rifles.
      2. Bold Ideas received funding from Prestige Capital to pay for the materials.
      3. Colt allegedly broke the contract by cutting the Expanse rifle production short.
      4. Bold Ideas went bankrupt.
      5. Prestige Capital was did not get repaid by Bold Ideas.
      6. Prestige Capital is suing Colt for breach of contract (because it owes money to
      the debtor with bankruptcy protection).

      • G B

        Thanks, but I think you missed the part about my comment being a joke.

      • supergun

        This is the very reason why COLT is having trouble. Lot of greedy people running COLT into the ground.

        • Nashvone

          This horse has long since been on the ground after being beaten to death. The greedy people are hoping to capitalize on the nostalgia that is the name Colt.

          • supergun

            A gun dealer once told me, that many companies have capitalize from using the Colt name. I never bought anymore bullets or pistols since then with the Colt name on it. Although I did buy the COLT CRX AR 15 which was a hand built AR carbine in Texas. Match barrel and trigger and shoots MOA.

          • Patrick R. – Senior Writer

            Hand built and Texas means you bought a Colt Competition rifle. Colt Competition = Bold Ideas.

            Colt is getting a check for everything you see their name on.

          • supergun

            I know that. The reason I bought that particular AR 15 because it was hand built with a match barrel and trigger and H-Bar matching bolts and match muzzle brake, and it is a dam good looking gun, and the 3 shots made at 100 yards had 2 bullets in the same hole, and the Supervisor in charge of having these built could not believe what I paid for the gun from BUDS GUNS shipped free and not sales tax. The moral of the story – I could care less what Colt got. Forgive my poor English with all the ands and commas. I don’t care about that either.

          • Nashvone

            I wanted an iconic .45 for my 45th birthday so I bought a stainless steel Colt 1911. It’s the only Colt I’ve ever owned. My Springfield Range Officer 1911, which cost $400 less, is a far superior pistol.

          • supergun

            I had a COLT stainless polish steel 70 series 45 that I sold. I wish I still had it. One of the pistols I regretted selling. You are right about the Springfields. Fine Weapons.

          • Colonel K

            It’s called “branding”. Oh, that we could brand some CEOs, or least tar and feather them.

  • Brad

    Colt has always priced themselves out of the market. Who in their right mind would buy a “reproduction” reissue M16A1 for $2500? Companies that put a prancing pony on their products (Ferrari, Colt, Ford, etc…) think that it makes them worth more.

    • Beju

      The carbines in question can be had for $600 from CDNN.

      Which is still $100 more than an M&P Sport 2 from CDNN :/

    • Twilight sparkle

      Fords are pretty cheap, you can get a mustang for cheaper than a camaro or challenger

  • Jim Slade
  • Destro Yakisoba
  • john huscio

    Pathetic pony indeed….

  • SPQR9

    Nothing says “drama” like “Colt.

  • Jeff Smith

    Bad business practices? Did the guy I referred to in my previous Colt comment finally snap out of his head trauma-induced good business practice kick?

    https://uploads.disquscdn.com/images/46239c5eb08417b63e034c98185520286a61d284a75d4ab3e0000181c2cb1727.jpg

  • Jonn Doe

    So I guess I should stop hoping for Colt to bring back the the Python,king cobra or the Anaconda?
    1985-1995 my decade of regret(SIGH)I had the chance to buy each of them and didn’t.
    please don’t start “Oh you could still get one” yeah for less than two mortgage payments?

    • ostiariusalpha

      Why would you stop hoping? It’s only a half million dollars. They made that up in just a week from Cobra sales.

    • Borchardt

      Why would you want a Colt DA revolver?

      • dave

        The Colt Python is a favorite revolver because of the quality of material and workmanship. Smooth action and strong locking. Bought one in the late 70’s and will never part with it, Great shooter!

        • Thomas Acquinas

          I’m sure Colt could build Pythons again. Same quality, fit and finish. They would cost $25,000, and still have a recall within 24 months. Let the company die. Better yet, let Rock Island buy them. The quality would certainly improve.

  • .45

    It is kind of weird to me to see the differences in various gun subcultures when it comes to Colt. Primary and Secondary is all “Colt 6920 is the bare minimum for a service AR”, and everyone here is ” Colt is too expensive and they’re in trouble, hahah.”

    • I still recommend the 6920 as a baseline, frankly.

  • otero51
    • Brick

      Beat me to it. Colt would be in a better place if they didn’t spend all their money on boats and hoes.

  • Brett baker

    Not again!

  • tazman66gt

    So, all we are hearing is Prestige Capital’s side of the story. We have yet to hear Colt’s side and if the terms of the contract were followed or if they paid them in full and Prestige Capital is just trying to get free money. Easy money if they win, nothing big if they lose.

  • supergun

    I purchase the COLT CRX AR 15 which was made in Texas by BOLD IDEAS. Very beautiful rifle. Shoots MOA. This is not the “expanse version”. I actually called and talked with the person in charge of making these rifles. If all COLTS were made this good, then H&K would have a problem.

    • MB

      H & K already has a problem, to the tune of 1/2 Billion dollar debt, and being stuck with a German law that prevents much of H & K’s production from being exported.

      • supergun

        That is why H&K is building a new factory right down the road in Columbus Georgia.

  • Matthew Parmentier

    Colt is still dying? Geeze, just die, Colt. Restructure, refresh, new leadership, and build stuff people want. And no more upcharging because of the horse logo. That and Colt meet your soon to be playmate H&K. He also likes to charge people too much money, and doesn’t sell things people really want. You too can be friends.

    • Andrew

      Colt isn’t dying. Contracting out these lower priced ARs to Bold Ideas (aka Colt Competition) instead of building them in-house now seems to be the smartest business decision Colt has made in a long time. When demand for ARs dried up after the November elections, Colt was just able to end their contract with Bold Ideas instead of being stuck with a new empty Colt factory and idle workers.

  • Nashvone

    Will someone please take this horse to the glue factory?

  • Rusty Shackleford

    The idea for the Colt expanse was good, probably only one they’ve made in a long time. Offer an entry level AR that is priced the same as everyone else with their logo. Unfortunately the demand dried up after god-emperor Trump (peace be upon him) became president.
    Sell people the IAR. Sell people revolvers. Sell your products at a price people are willing to pay.

  • Anton_Zilwicki

    Have not and will not buy a single Colt Product ever. Period. Over priced, over hyped. I won’t say junk but mediocre barely covers current Colt production. I’ve been a Gunsmith since 1975. The old Colt stuff from before 1975 was wonderful. Since the Mergers and Acquisitions/arbitrage clowns got involved their products have gone straight into the toilet quality wise. But the price is still premium….

  • richard kluesek

    Was going to buy Colt LE 6920 OEM1 s but these were unavailable so purchased an alternative. Glad I did, wanted “COLT” not Bold Ideas guns, at least what I bought is the brand name and logo on the merchandise.