The author of the article conflates Colt with Remington, which produces the R1 version of the 1911 pistol.
Sciens Capital Management LLC, the owners of Colt, would have done better by focusing on better Marketing and Operations Management instead of creative Finance with Colt. The proposed financial restructuring may provide short term breathing space, but unless Colt provides a mix of desirable quality products at prices both military and non-military customers are willing to pay, then Colt is only delaying the inevitable. This restructuring appears to be a shallow attempt to reduce the corporate liability to Colt’s creditors, allowing more post-bankruptcy capital to be available to the shareholders, namely Sciens Capital Management LLC.
“Fitch [Ratings] notes that the recent expansion of the MAP [Managed Account Platform] makes it a strategic priority to restore profitability and growth to the whole firm. However, the company has continued to suffer from staff turnover and attrition, resulting in the currently observed low levels of staff. So stabilising [sic] staffing resources and expanding from current minimum levels to support business growth and maintain execution standards must be made a key objective for Sciens. In additions the company has to replace the custodian of the MAP at the end of July (as a result of the current custodian’s withdrawal from this business), while mitigating operational risk in the interim.”
“Low levels of staff” from turnover and attrition does keep costs down, for a while.
The author of the article conflates Colt with Remington, which produces the R1 version of the 1911 pistol.
ReplyDeleteSciens Capital Management LLC, the owners of Colt, would have done better by focusing on better Marketing and Operations Management instead of creative Finance with Colt. The proposed financial restructuring may provide short term breathing space, but unless Colt provides a mix of desirable quality products at prices both military and non-military customers are willing to pay, then Colt is only delaying the inevitable. This restructuring appears to be a shallow attempt to reduce the corporate liability to Colt’s creditors, allowing more post-bankruptcy capital to be available to the shareholders, namely Sciens Capital Management LLC.
http://www.investinginbonds.com/learnmore.asp?catid=10&subcatid=67
So overall, how is Sciens Capital Management LLC doing?
http://www.hedgefundinsight.org/sciens-faces-a-series-of-challenges-according-to-fitch/
“Fitch [Ratings] notes that the recent expansion of the MAP [Managed Account Platform] makes it a strategic priority to restore profitability and growth to the whole firm. However, the company has continued to suffer from staff turnover and attrition, resulting in the currently observed low levels of staff. So stabilising [sic] staffing resources and expanding from current minimum levels to support business growth and maintain execution standards must be made a key objective for Sciens. In additions the company has to replace the custodian of the MAP at the end of July (as a result of the current custodian’s withdrawal from this business), while mitigating operational risk in the interim.”
“Low levels of staff” from turnover and attrition does keep costs down, for a while.