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!