According to a number of firearms blogs and news sites Colt is in the throws of a massive layoff (link).
I am no financial expert, nor an insider in any way but from what I hear Colt’s problems are with the investment firm that owns them. They are draining it of so much money they can’t keep the doors open. Combined with poor decisions from the management team and you have a company that was going bust during a boom.
I am disappointed that this could mean that the new Colt Cobra could fail to see the light of day but mostly I feel bad for all those folks who just lost their jobs. Keep them in your prayers, I will be.