The mass media is loving this one, my GF yesterday mentioned it to me that people were talking at work that the company that made the assault rifle used in more mass shootings than any other gun is being cancelled by the company making it. Ridiculous and wrong on several counts, but that's what the media pushes and non-gun people hear. Unfortunately these days the truth is pretty irrelevant, it's what the sheep get shoveled 24/7 by the mass media.
Could be a lot of things, there's no denying that gun sales have tanked since Trump took over, and that the AR15 market was super saturated. Also, Colt simply does not carry the reputation they used to. Maybe it's marketing, etc. but I can't think of one interesting gun I've seen them release in the last few years. Perhaps the revival of their revolvers, but those are tiny market share to start. So the average guy is probably not going into gun stores seeking out Colt, and most of them are probably happy to buy a $500 AR, rather than a $1000+ Colt. Mind you none of that has anything to do with the quality of Colt which seems pretty good.
Plus frankly "gun sales" aren't always good, look at what Cohen did to Kimber and now Sig. Lots of sales and marketing hype but quality control issues and problems with new release after new release. But if you offer the military handguns for $207 a pop you get military contracts. Good for investors, but not customers.
It is alarming that so many big gun companies now that have significant ownership by investment groups, that already have proven themselves pretty anti-gun, or at least very open to anti-gun measures.
If you really want to go down the conspiracy rabbit hole, perhaps Colt will go the way of Ruger, who used to only make "assault weapons" for the LE/MIL market, and were the driving force behind the 94' AWB partly because they were losing market share and wanted to hurt the competitors in an area they didn't have any offerings in.