Austin Gun Rights Advocate Faces Bankruptcy After Supreme Court Win

Michael Cargill, a prominent advocate for gun rights in Austin, Texas, is navigating a significant financial crisis despite a recent legal victory at the U.S. Supreme Court. Cargill, who has spent over a decade campaigning for reduced firearm restrictions, played a crucial role in overturning a ban on bump stocks imposed by the first Trump administration. However, his gun shop, Central Texas Gun Works, faces substantial challenges in bankruptcy court, with debts nearing $3 million.

Cargill’s business, operating under the registered name CTCHGC LLC, finds itself in dire financial straits, reporting liabilities approximately five times greater than its assets. The situation has become so severe that Cargill’s personal bankruptcy proceedings are being managed alongside those of his business, reflecting the intertwined nature of their financial difficulties.

In a recent court filing, Cargill requested an emergency hearing to access funds for payroll, as staff paychecks were due on Friday. The urgency of this request highlights the precarious situation at Central Texas Gun Works, which is experiencing its second bankruptcy in two years. Contributing factors include the recent death of Cargill’s former attorney, Kell Mercer, and aggressive actions taken by creditors seeking repayment.

Stephen Sather, Cargill’s current attorney, indicated that some creditors began sending notices to Cargill’s clients, asserting liens on any payments owed to him. Sather explained, “When people get these notices, they shut down because they don’t know who to pay.” This strategy has likely exacerbated the gun shop’s financial woes.

A review of Cargill’s bankruptcy filings reveals a troubling lack of progress in repaying significant debts. For instance, the gun shop’s liabilities to Austin-based lender Adrian Jung have escalated from over $650,000 in September 2024 to more than $730,000 by December 23, 2024. The shop also owes nearly $1 million to the U.S. Small Business Administration and over $35,000 to Alex Jones’ bankruptcy estate.

The U.S. trustee overseeing the case, Shane Tobin, has raised concerns about Cargill’s compliance with bankruptcy filing requirements, suggesting the court either convert the case to Chapter 7 liquidation or dismiss it entirely. If dismissed, creditors could resort to lawsuits to recover their funds, potentially igniting a flurry of legal actions against Cargill.

Despite these challenges, Cargill remains a vocal figure in the gun rights movement in Texas, frequently engaging with media to amplify his message. He has been involved in high-profile legal battles, including a lawsuit against the city of Austin regarding firearm bans in City Hall, where he emerged victorious.

Cargill’s public persona has often drawn controversy. His past includes a contentious primary race for the Precinct 2 constable seat and incidents involving physical altercations, including a notable instance where he body-slammed a man he claimed threatened him. Recently, he made headlines again when he publicly addressed a robbery attempt at his store, suggesting that his staff would not hesitate to use deadly force to protect themselves.

As Cargill continues to navigate his legal and financial challenges, the outcome of his bankruptcy proceedings remains uncertain. He is poised to make critical filings this week, and if successful, he may avoid the court’s dismissal of his case, allowing him to continue his advocacy for gun rights while addressing his financial obligations.