KANSAS CITY, Mo. — A Nevada-based gun manufacturer filed for bankruptcy after Kansas City sued the company over weapons trafficking last month.
KCUR-FM reports that Jimenez Arms filed for Chapter 7 bankruptcy on Feb. 10. It's bankruptcy petition listed assets of less than $50,000 and outstanding liabilities surpassing $1 million.
This could pose a challenge for Kansas City, should it win the lawsuit and be rewarded compensation from the company.
Kansas City filed the lawsuit against several businesses in the gun industry, one of them Jimenez Arms, arguing they've contributed to illegal gun trafficking that's created a public nuisance.
"There is a significant problem with illegal gun trafficking in our city," Mayor Quinton Lucas said in a previous interview. "While a lot of our criminal justice partners make sure they root this out, they address it, there are a lot of private actors who each day create new threats for citizens of Kansas City, for citizens of the entire region."
In addition to Jimenez Arms, local gun dealers Conceal and Carry, C.R. Sales and Mission Ready Gun Works are also named as defendants in the lawsuit.
Lucas said it's the first such lawsuit filed against the gun industry in more than 10 years.