GUN MAKER KBI / CHARLES DALY CLOSES DOORS

[1marty]

here's a summary of their operations:

Handguns: 1911 Steel Pistols, from 1998 until 2008 from Armscor in the Philippines. Beginning in 2009, the new G4 model is being produced by BUL Transmark in Israel.  M5 Polymer Framed 1911 Pistols from Bul in Israel since 1997. A clone of the Browning Hi-Power was produced in the US from 2002 to 2006 with components from FEG in Hungary and final manufacturing by either Dan Wesson Firearms or Magnum Research in the US. 1873 style single action revolvers were manufactured by F.LLI Pietta of Italy in the mid-2000s.
While not technically under the Charles Daly brand, KBI resumed importing the Jericho 941 Pistols from Israel Weapons Industries (IWI) Ltd. in 2009.
Rifles: Bolt action Mauser and Mini-Mauser rifles were produced by Zastava Arms in Serbia from 2002 until 2005. 1892 lever action rifles are produced in Italy by Armi Sport de Chiappa. In 2008 they entered the AR-15 market with a US produced line of AR-15 type rifles and carbines under the Charles Daly Defense brand.
Shotguns: Over and under, side by side, pump action, and semi-automatics are currently produced in Turkey. All of the pumps and semi-autos are made by Akkar in Istanbul, but Sarsilmaz and ATA also produced semi-autos for Daly during the mid-2000s. Between 1996 and 2005, side by sides came from Zabala Hermanos in Spain and over & unders came from Sabatti in Italy. From the mid-1960s to the mid-70's, Miroku of Japan, the producer of Browning shotguns and rifles, manufactured the over & under shotguns for Daly.

[williamlayton]

C4
I don't expect you to do anything--it was not posted as a question-just a response.
Am I concerned about job losses? YES.
My feeling is that we brought on this recession ourownselves by excessive and frivolous spending. It was a good wave and we rode it for all it was worth.
There is an ad on TV today that goes something like this:
Will we see this recession in history as the Great Recession or the recession that made us great--Dee calls it rising from the ashes.
Americans have it within theirownselves to rise to the occasion and come out of this standing tall and a better Republic.
We also have it within ourselves to sell out too socialism.
A Republic is the only government that can withstand a recession or Depression. the gov. can't do it, but, the people can. Eventually a Socialistic system collapses on itsownself--does every time.
I am not concerned about what has happened as much as I am conerned about how we will meet this challange. Job losses and business closings go along with a recession. It is a method of cleansing much as is a laxitive--not much fun but the results are worth the cleansing.
Whatever happens "it is what it is"---no emotion, fear or feelings.
Blessings

[JPShelton]

I'm curiuos what the real issue is with KBI/CD??

I am, too.  I think there is more than one issue working in KBI's demise, though.

With all the increased demand for firearms, its hard to understand a demand problem in their target market.

There is increased demand in some segments of the sporting arms market, but not so much for the stuff I like.  The demand seems to be for "tactical" stuff.  This could be why Remington has its name on AR platform rifles now.  Smith and Wesson has an AR platform rifle.  Heck, even Ruger has jumped on the bandwagon.

I would think they would have a hard time meeting the demand with supply.

That would be true if they were an established player in the AR market or combat pistol market or tactical shotgun market,  But they weren't.  I think the quoted poster is assuming an active, "bull market" for traditional sporting arms that isn't there right now.  Right now, "tacticool" is where its at.  It isn't in traditionally styled shotguns from Turkey which largely cater to the hunting market. 

Since they really are just an importer, I wonder if they lost supply support from one of the major off-shore manufactures?? There's a number of supply chain issues a pure importer faces like CD.

Remington and Zastava both seem to have screwed KBI out of its traditional sporting rifle business.  So that's one issue.  Another very likely has to do with backing up questionable quality control on Turkish shotguns with a warranty.  The heart of the matter is probably a simple case of being heavily invested in products that people don't currently want to buy, and probably won't be demanding for the forseable future.

-JP

[williamlayton]

Business is business. Too look at Remington as screwing someone is to say that KBI had an a right too this business in perpatuity. They don't and Remington doesn't either.
This is a Republic boys--Look at the car makers that have failed over the years--well established makers of long years (long years for the time in which the industry was created).
If someone can do better then you loose business.
This is a Republic and that is what makes innovation work--not sitting on old technology but finding a better business plan and technology to gain a share in the market place.
There is an old saying in business--remaining stagnant will cause your demise.
Blessings

[Cabin4]

I'm curiuos what the real issue is with KBI/CD??

I am, too.  I think there is more than one issue working in KBI's demise, though.

With all the increased demand for firearms, its hard to understand a demand problem in their target market.

There is increased demand in some segments of the sporting arms market, but not so much for the stuff I like.  The demand seems to be for "tactical" stuff.  This could be why Remington has its name on AR platform rifles now.  Smith and Wesson has an AR platform rifle.  Heck, even Ruger has jumped on the bandwagon.

I would think they would have a hard time meeting the demand with supply.

That would be true if they were an established player in the AR market or combat pistol market or tactical shotgun market,  But they weren't.  I think the quoted poster is assuming an active, "bull market" for traditional sporting arms that isn't there right now.  Right now, "tacticool" is where its at.  It isn't in traditionally styled shotguns from Turkey which largely cater to the hunting market. 

Since they really are just an importer, I wonder if they lost supply support from one of the major off-shore manufactures?? There's a number of supply chain issues a pure importer faces like CD.

Remington and Zastava both seem to have screwed KBI out of its traditional sporting rifle business.  So that's one issue.  Another very likely has to do with backing up questionable quality control on Turkish shotguns with a warranty.  The heart of the matter is probably a simple case of being heavily invested in products that people don't currently want to buy, and probably won't be demanding for the forseable future.

-JP

This is excellent insight. My initial thought was the boom in tactical stuff but I also knew CD was in that market. Apparently, they were not established there long enough and/or the quality did not meet the demand of those enthusiasts. From this analysis, it does seem to appear they just simply executed the business poorly.

Thanks for the breakdown.
C4