As can be seen in what is left of that WSJ article, Colt has a cash flow problem. Predator business practices occur all the time, and Colt is attempting to force Dealers to send them money, basically, to do business with them.
Colt is no longer a dominant player in the firearms industry, their guns are old designs, behind the times in features, and Colt does not have an extensive line of firearms, and what they do have is expensive compared to the competition. There was a time when Colt could dictate terms to their dealer base. Now, they are lucky to have dealers selling Colts.
I predict more Dealers will dump Colt than continue to do business with them.