The bankruptcy of a South Carolina firearms distributor highlights the limits of Bank of America Corp.’s efforts to distance itself from the gun industry, WSJ Pro Bankruptcy reported. While the Charlotte, N.C.-based bank last year said it would stop making new loans to manufacturers of military-style firearms sold to civilians, the pledge doesn’t apply to retailers or distributors of guns. Now, as Bank of America is leading a $25 million financing package to help United Sporting Cos. sell off inventory in bulk and liquidate its operations in chapter 11, some advocates on both sides of the gun-control debate are questioning the bank’s decision to make a distinction between gun makers and retailers. Some gun-control groups say the bank hasn’t done enough to distance itself from the industry, while Second Amendment rights supporters say it already has gone too far. Bank of America was one of a number of companies that sought to distance themselves from the firearms industry in the wake of a school shooting in Parkland, Fla., that killed 17 people in February 2018. Since Bank of America’s pledge, mass shootings — at a Pittsburgh synagogue; at a Thousand Oaks, Calif., bar; and at a Virginia Beach, Va., municipal building — have continued across the U.S.
