Is COLT About To Bottom Out?

MOC Blog picked up this interesting tidbit from the infamous gay gossip gremlin Damon Kruzer: COLT Studio Group’s parent company Prowest Media just filed for bankruptcy—does that mean that COLT is going to bottom out in the near future?
Kruzer writes:

The stunning news of last week’s bankruptcy filing by Colt’s parent company Prowest Media, as well as that of it’s owners, partners John Rutherford and Tom Settle, put into perspective the impossibility of the Colt deal, and the on-going effects of the Great Recession on the gay porn business. Combine that with the other trend-setting events of the week, and the gay porn business has been rocked like the San Francisco earthquake.

Salvaging Colt is not going be an easy task by any means, as Jim French is… only [COLT’s] largest creditor with a listed debt of $1.45 million… despite releasing a new movie last week, the company will have a very difficult time continuing as a going concern. In 2008 Colt had sales of $2.2 million. In 2009 sales dropped 28%, and the run rate for 2010 indicated a drop of 36% for this year.

We spoke with a friend of ours who had a very close-up view of Unzipped magazine when it folded. He said that if you look at the folding of Honcho, Torso, Mandate, Playguy, Inches, Black Inches, and Latin Inches as well as the restructuring of Men and Freshmen magazine , the future doesn’t look bright for large porn studios.
Few men want to shell out eighty bucks for porn DVDs that they watch only a few minutes at a time and it seems the smarter studios stream web content through affiliates like us, that way men can pay for “milk” when they’re thirsty instead of having to buy the entire cow, so to speak.
According to Kruzer, all COLT has behind its debt is a bunch of DVDs, calendars, and sex toys; hardly enough to cover its ass(ets). But we’ll keep a close eye on the situation and let you know. If they do go belly up, maybe there will be a fire sale on COLT porn goodies. That’s crude of us, but their loss could be your gain.