National Rifle Association files for Chapter 11 bankruptcy protection

The National Rifle Association, the powerful gun lobby that has been at the center of some of the nation's most heated debates over weapons rights, filed for Chapter 11 bankruptcy protection Friday.

The NRA's bankruptcy filing in Texas comes after the New York attorney general recently filed a lawsuit seeking to dissolve the group. The New York AG, Letitia James, has accused the organization of diverting millions in charitable giving for "personal use by senior leadership."

Chapter 11 bankruptcy is designed to allow companies or organizations to restructure their operations, shed debt and emerge as a sustainable enterprise. But it can lead to dissolution or liquidation.

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The NRA said in a statement Friday that it is in its "strongest financial condition in years" and that it filed for bankruptcy protection to escape "a corrupt political and regulatory environment in New York."

The NRA, which did not immediately respond to a USA TODAY request for comment, said in a statement that it would make no immediate changes to its operations or workforce.

But the group also said it would use bankruptcy court to "streamline costs and expenses" and "proceed with pending litigation in a coordinated and structured manner" in pursuit of "many financial and strategic advantages."

Although headquartered in Fairfax, Virginia, the organization is registered as a 501(c)(4) not-for-profit corporation in New York. In a lawsuit seeking to recoup millions and close the NRA for good, James has accused the organization of enabling executives to use NRA funds for personal travel spending, including private jets and swanky meals.

“The NRA’s influence has been so powerful that the organization went unchecked for decades while top executives funneled millions into their own pockets,” James said last year in a statement. “

NRA CEO Wayne LaPierre, among those accused of using the group's funds for his personal benefit, has denied wrongdoing.

The NRA said it will shift its nonprofit registration to Texas to "enable long-term, sustainable growth and ensure the NRA’s continued success as the nation’s leading advocate for constitutional freedom."

“This strategic plan represents a pathway to opportunity, growth and progress,” LaPierre said in a statement. “Obviously, an important part of this plan is ‘dumping New York.’ The NRA is pursuing reincorporating in a state that values the contributions of the NRA, 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 group also said it is studying the possibility of relocating its headquarters or "segments" of its operations.

It added that it "expects to uphold commitments to employees, vendors, members and other community stakeholders"