Struggling under the weight of up to $500 million in debt, storied gun maker Colt Defense has filed for chapter 11 bankruptcy. The 179-year-old gun manufacturer once thrived with government contracts and a strong consumer following. However, since 2009 the company’s government sales have dropped from 60 percent of total sales to less than 10 percent. On the consumer side, an investment in smart gun technology designed to make guns safer backfired with gun owners, contributing to a decline in consumer sales. “Instead of doing it to protect gun owners’ rights, they appeared to be part of the assault on gun owners’ rights,” says Richard Feldman, head of the Independent Firearm Owners Association. “It left a bad taste in people’s mouths, which takes a long time to get rid of.” Despite the misstep and declining sales, analysts say the iconic Colt name remains a strong asset that might make an outside investor interested in buying the beleaguered company.

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