The National Rifle Association just announced that it is planning to file for bankruptcy as part of a massive restructuring plan that will also see the company reincorporate in Texas:
The NRA is filing for bankruptcy and moving to Texas: https://t.co/76hRv7SBU9
— Matt Ford (@fordm) January 15, 2021
Full details here.
“Our work will continue as it always has. No major changes are expected to the NRA’s operations or workforce”:
BREAKING NEWS: @NRA Dumps New York to Reincorporate in Texas, Announces New Strategic Plan
“This is a transformational moment in the history of the NRA,” says NRA CEO & EVP Wayne LaPierre.
Visit https://t.co/bctdcmFBwl for more info! pic.twitter.com/k72QELZsbN
— NRA (@NRA) January 15, 2021
So, here’s exactly what this means via the Q&A on the announcement:
What did the NRA announce?
This is a transformational moment for the NRA. We announced a new strategic plan called Project Freedom.
The NRA’s new strategic plan involves pursuing reincorporating the Association from the State of New York to the State of Texas – home to more than 400,000 NRA members and site of the 2021 NRA Annual Meeting being held in Houston.
The NRA’s restructuring plan also aims to help the NRA streamline costs and expenses, proceed with pending litigation in a coordinated and structured manner, and realize many financial and strategic advantages.
We believe the restructuring plan positions our organization for the future – and ensures our continued success as the nation’s leading advocate for constitutional freedom.
It’s important to note that they’re not insolvent:
Is the NRA going “bankrupt?”
No. In fact, this move comes at a time when the NRA is in its strongest financial condition in years.
To facilitate its reorganization, the NRA and one of its subsidiaries filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division. The NRA is not insolvent.
We expect no impacts to NRA programming.
Nothing is more important to the NRA than protecting the Second Amendment rights of our law-abiding members. We will be as effective as ever in advocating for your rights, promoting firearms education and training, and engaging in public endeavors.
And they’re saying this is not an admission that they misused donor funds:
By filing for chapter 11, is the NRA admitting it mismanaged donor funds?
Not at all. We have utilized all donor contributions in furtherance of the NRA’s mission. This action is necessitated primarily by one thing: the unhinged and political attack against the NRA by the New York Attorney General.
A restructuring plan is a proven mechanism for streamlining legal and business affairs. All membership fees and donations will continue to be used in furtherance of our Second Amendment advocacy.
The entire process should take 6 months:
When will the restructuring process be completed?
This process begins immediately. The NRA is expected to emerge from these proceedings within the next six months.
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