NRA Files for Bankruptcy with Plans to Re-Locate to Texas
On January 15, 2021, the National Rifle Association (NRA) announced it was filing for Ch. 11 Bankruptcy. This is part of a strategic re-organization that will see the NRA abandon New York State and, hopefully, reincorporate in Texas. It is not clear how this move will impact the current legal action brought by New York Atty. General seeking to dissolve the 150-year-old organization, which was founded in 1871. The New York Times reports: “The bankruptcy filing could delay the resolution of the Attorney General’s case while the matter is litigated in Bankruptcy court.” And a lawyer for the NRA, Wm. Brewer III, stated: “Under this [reorganization] plan, the Association wisely seeks protection from New York officials who it believes have illegally weaponized their powers against the NRA and its members.”
In a letter to members, NRA CEO and Executive VP Wayne LaPierre posted: “We are DUMPING New York, and we are pursuing plans to reincorporate the NRA in Texas.” To facilitate the restructuring, the NRA and a subsidiary have filed Ch. 11 petitions in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division. LaPierre continued: “The NRA is pursuing reincorporating in a state that values the contributions of the NRA, [that] celebrates our law-abiding members, and will join us as a partner in upholding constitutional freedom. This is a transformational moment in the history of the NRA.”
“The plan allows us to protect the NRA and go forward with a renewed focus on Second Amendment advocacy”, added current NRA President Carolyn Meadows. “We will continue to honor the trust placed in us by employees, members, and other stakeholders[.]” The NRA also announced Marschall Smith will serve as Chief Restructuring Officer. A former Senior VP and General Counsel of 3M Company, Smith has more than 35 years of legal and business experience.
Important Points for Current NRA Members:
1. The NRA is Not Closing Operations — The organization will continue providing services to its members even during the Bankruptcy Proceedings. NRA Leader LaPierre’s letter states: “We will continue to train Americans and teach them firearm safety. We will continue to teach hunter safety” and “We will continue to publish and deliver your magazines.”
2. NRA Memberships Remain in Full Effect — As far as we know, the NRA does NOT plan to nullify or cancel any current NRA memberships through the bankruptcy or re-organization. LaPierre’s letter states: “Importantly, our plans do not impact your membership at any level. NRA supporters will continue to enjoy all their full member benefits – from new members to Life Members to Benefactor Members.
3. The NRA Will Keep HQ in Virginia — The NRA does NOT plan to abandon its current headquarters in Fairfax, Virginia. However, NRA officials state they might open additional executive offices in Texas.
4. The NRA Will Continue to Use Membership Funds for Operations — LaPierre’s letter to members states: “All membership dues and financial donations will be fully dedicated to supporting our operations and public advocacy. This plan actually improves our business. It protects us from costly, distracting and unprincipled attacks from anti-2A politicians aimed at attacking the NRA because we are a potent political force.” There is no discussion in the LaPierre letter about changes to executive compensation and benefits, or efforts to replace top leadership. The use of NRA funds by Wayne LaPierre and other high-ranking NRA officials has been challenged by forces both inside and outside the organization. Including special pension benefits it has been stated that LaPierre received over $2.15 million in compensation in 2018.*
*In 2019 the Washington Post reported LaPierre had total 2018 compensation of about $2.15 million after a 57% pay raise. In previous years, he had a lower base salary, but was eligible for large pension payouts. According to Celebrity Net Worth: “Wayne LaPierre’s NRA salary starts at $985,000 per year. In most years he also typically earns a bonus of roughly $150,000. Outside of base salary and bonuses, Wayne participates in the NRA’s employee retirement plan. In 2015 he became old enough to receive a $3.7 million distribution from his retirement account. So in that one year, he earned a bit over $5 million, but in most years his salary is closer to $1 million.”
Similar Posts:
- New York Jury Finds Wayne LaPierre Liable for Misuse of Funds
- Wayne LaPierre Re-Elected as NRA Executive VP and CEO
- Allan Cors Elected President of NRA
- NRA States Position at U.N. Arms Trade Treaty Conference
- Pete Brownell Chosen as 64th NRA President
Share the post "NRA Files for Bankruptcy with Plans to Re-Locate to Texas"
Tags: NRA, NRA Bankruptcy, NRA Chapter 11, NRA moves Texas, NRA New York, NRA Wayne LaPierre, TX NRA
Root cause= Wayne LaPierre.