The company filed for bankruptcy protection in a Texas court on Friday.
The National Rifle Association announced that it plans to restructure itself as a Texas-based nonprofit and filed for Chapter 11 bankruptcy protection.
“The move will allow for long-term sustainable growth and ensure the continued success of the NRA as a key advocate of constitutional freedom – free from the toxic political environment of New York,” the arms defense group said in a statement on Friday.
The NRA added that it has been incorporated in New York for approximately 150 years.
“This strategic plan represents a path to opportunity, growth and progress,” said NRA CEO Wayne LaPierre in a statement. “Obviously, an important part of this plan is to ‘evict New York’. The NRA is seeking reincorporation in a state that values NRA contributions, celebrates our law-abiding members and will join us as a partner in the defense of constitutional freedom. “
LaPierre dubbed the decision on Friday “a turning point in NRA history”.
The move comes after the NRA was sued by New York Attorney General Letitia James last August in an attempt to dissolve the group.
James accused the NRA of a series of “illegal conduct”, according to a press release at the time describing the process, including “[the] diversion of millions of dollars from the organization’s charitable mission for personal use by senior leadership, awarding contracts for the financial gain of close associates and family members and appearing to distribute lucrative no-show contracts to former employees to buy their silence and continued loyalty. “
The NRA filed a counter-complaint, calling the initial process political motivation.
James responded on Friday to the news of the bankruptcy in a statement, saying, “The alleged financial situation of the NRA has finally reached its moral status: bankruptcy.”
“While we are analyzing this process, we will not allow the NRA to use this or any other tactic to escape the responsibility and oversight of my office,” added James.