The beleaguered gun rights organization, The National Rifle Association, has filed for Chapter 11 bankruptcy protection and plans to restructure in the state of Texas. Over the past few years, the NRA has come under fire for alleged financial mismanagement and the target of lawsuits and other civil actions. In August, the New York Attorney General announced intentions to dissolve the NRA under a fraud and abuse investigation. The NRA bankruptcy petition is part of a plan to reorganize outside the state of New York.
National Rifle Association says it has filed for bankruptcy as part of restructuring
Jan Wolfe, Jonathan Stempel – REUTERS
The National Rifle Association on Friday filed petitions with a U.S. bankruptcy court seeking protection from creditors by restructuring, the gun rights advocacy group announced.
The NRA filed the Chapter 11 petitions in U.S. Bankruptcy Court in Dallas, it said in a news release.The NRA said it would restructure as a Texas nonprofit to exit what it said was a “a corrupt political and regulatory environment in New York” state, where it is currently registered.
The influential group said in a statement there would be no immediate changes to its operations or workforce, and that it “will continue with the forward advancement of the enterprise – confronting anti-Second Amendment activities, promoting firearm safety and training, and advancing public programs across the United States.”
The Second Amendment of the U.S. Constitution guarantees the right to keep and bear arms.
Last August, New York state Attorney General Letitia James sued to dissolve the NRA, alleging senior leaders of the nonprofit group diverted millions of dollars for personal use and to buy the silence and loyalty of former employees. – Read more a REUTERS.
N.R.A. Declares Bankruptcy and Seeks to Exit New York
Danny Hakim – The New York Times
Typically, non-profit groups that are chartered in New York and under investigation are prohibited from relocating during an inquiry; in recent years, the attorney general’s office prevented the Trump Foundation from closing before it had reached the conclusion of an investigation into that organization.
The N.R.A. and a subsidiary filed Chapter 11 petitions in the United States Bankruptcy Court in Dallas. The group said Friday that Marschall Smith, a former general counsel for 3M Company, would serve as its chief restructuring officer.
The group said it had also formed a committee to examine moving its headquarters out of Fairfax, Va., and that it would study “opportunities for relocating segments of its business operations to Texas or other states.” – Read more at NYT.com