NRA files for bankruptcy and seeks to be incorporated in Texas


AUSTIN, Texas, USA (AP) -- The National Rifle Association announced Friday that it has applied for bankruptcy protection and will attempt to establish itself in Texas instead of New York, where a state lawsuit attempts to liquidate this organization defending the right to carry weapons.

The announcement was issued months after New York Justice Secretary Letitia James sued the NRA to try to dissolve it on allegations that its top executives illelegably diverted tens of millions of dollars for luxury personal travel, contracts for undestop associates, and other questionable expenses.

The coronavirus pandemic also upset the NRA, which last year fired dozens of employees. The group canceled their national convention and saw the fundraiser truncated. In its bankruptcy application, the association mentions assets of between $100 million and $500 million, and between $100 million and $500 million in liabilities. However, the NRA stated that it is "in its strongest financial condition in years".

The organization was granted Chapter 11 of the Bankruptcy Act at a federal court in Dallas and noted that it plans to be incorporated in Texas, where according to records it formed a limited liability company, Sea Girt LLC, on November 20, 2020. Sea Girt LLC filed a separate bankruptcy application on Friday, listed few assets and less than $100 million in liabilities. Sea Girt was the name of a shooting range in New Jersey where the NRA began conducting annual shooting competitions in 1892, according to a portal of the organization.

In its lawsuit, the NRA said its long-time leader, Executive Vice President Wayne LaPierre, decided to apply for bankruptcy protection after consulting with a committee of three officials of the September-trained association to oversee its legal strategies. The NRA board of directors voted on 7 January to clarify LaPierre's employment agreement, giving it the power to "reorganize or restructure the organization's affairs".

"The measure will enable long-term sustainable growth and ensure the continued success of the NRA as the nation's leading advocate for constitutional freedom, free from New York's toxic political environment," the agency said in a statement.

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Sisak reported from New York. The Associated Press reporter Jake Bleiberg in Dallas contributed to this firm.


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