NRA declares bankruptcy, plans to incorporate in Texas
AUSTIN — The National Rifle Association announced Friday it has filed for bankruptcy protection and will seek to incorporate the nation’s most politically influential gun-rights group in Texas instead of New York.
The announcement made on the NRA’s website comes months after New York’s attorney general sued the organization over claims that top executives illegally diverted tens of millions of dollars for lavish personal trips, no-show contracts for associates and other questionable expenditures.
The coronavirus pandemic has also upended the NRA, which last year laid off dozens of employees, canceled its national convention and scuttled fundraising. The NRA’s bankruptcy filing listed between $100 million and $500 million in assets and between $100 million and $500 million in liabilities. Still, the NRA claimed in announcing the move that the organization was “in its strongest financial condition in years.”
The NRA filed for Chapter 11 bankruptcy in federal court in Dallas and said it planned to incorporate in Texas, where records show it formed a limited liability corporation, Sea Girt LLC, in November 2020. Sea Girt LLC made a separate bankruptcy filing Friday, listing fewer than $100,000 in liabilities.
“The move will enable longterm, sustainable growth and ensure the NRA’s continued success as the nation’s leading advocate for constitutional freedom — free from the toxic political environment of New York,” the NRA said in a statement.
A message seeking comment was left with a Dallas lawyer who made the bankruptcy filings on behalf of the NRA and Sea Girt LLC.
Shortly after the announcement, New York Attorney General Letitia James said she would not allow the NRA to “evade accountability” or oversight. Her office’s lawsuit last year highlighted misspending and self-dealing claims that have roiled the NRA and its longtime leader, Wayne LaPierre, in recent years — from hair and makeup for his wife to a $17 million post-employment contract for himself.
“The NRA’s claimed financial status has finally met its moral status: bankrupt,” James said.
The gun-rights group boasts about 5 million members. Though headquartered in Virginia, the NRA was chartered as a nonprofit in New York in 1871 and is incorporated in the state. Going forward, the NRA said a committee will study opportunities to relocate segments of its operations to Texas and elsewhere.
The NRA’s largest creditor, owed $1.2 million, is Ackerman McQueen, which is the group’s former advertising agency that was behind the now-shuttered NRA TV service. The NRA sued the Oklahoma-based company in 2019, alleging it was being overbilled and said in Friday’s bankruptcy filing that the debt it is owed is disputed. The lawsuit is pending. A message seeking comment was left with Ackerman McQueen.