City of Philadelphia Holds Gun Shops Accountable in Straw Purchasing Litigation Brought With Everytown Law

Delia’s Gun Shop Forced to File for Bankruptcy Days Before Trial; Operators of Remaining Two Defendants Agree to No Longer Sell Guns in Settlements With City; City Stands to Recover up to $11.9 Million in Damages From Insurer

Philadelphia, PA – The City of Philadelphia Law Department, along with co-counsel Everytown Law and Herbert Smith Freehills Kramer, today announced that Mad Minute Enterprises, LLC d/b/a Delia’s Gun Shop, a long time contributor to gun violence in Philadelphia, has filed for Chapter 7 liquidation bankruptcy days before the City of Philadelphia’s lawsuit against it was set to go to trial. The lawsuit alleged that three local firearms dealers had repeatedly sold firearms to obvious straw purchasers, contributing to gun violence in the City. The owners of the two other defendants, Frank’s Gun Shop and WRT Management, Inc. have agreed to no longer participate in the gun business and WRT Management has assigned all of its rights to insurance coverage to the City, up to an amount of $11.9 million.

“The gun shops at the center of this lawsuit have put weapons into the hands of criminals, children, and people who should not have access to a firearm. I feel confident that our residents are now safer as a result of these settlements and the departure of these negligent businesses from the industry,” said Mayor Cherelle L. Parker. “My Administration is grateful for this outcome and will continue investing in our community-based gun violence prevention and healing initiatives.”

“Delia’s could not risk going to trial. The evidence that it had repeatedly engaged in illegal and obvious straw selling was overwhelming,” said Alla Lefkowitz, Managing Director of Affirmative Litigation for Everytown Law. “Gun dealers have a legal responsibility to stop sales where suspicious purchasing behaviors indicate illegal gun trafficking or straw purchasing. Delia’s repeatedly failed in that duty.”

Delia’s Gun Shop, operating for years on Torresdale Ave in Northeast Philadelphia, was the source of 803 crime guns recovered in Pennsylvania from 2015-2019.  In 2016, the ATF even temporarily suspended the store’s license for making an obvious straw sale. However, that did not lead the store to adopt any written policies, procedures or training to prevent straw purchasing. In 2020, Delia’s was the top source of crime gun recoveries in Pennsylvania with short “time-to-crime,” a strong indicator that guns were being trafficked. 

The City’s investigation demonstrated that from 2018 through 2023, Delia’s sold at least 33 firearms to eight different customers who Delia’s knew or should have known were illegally straw purchasing the guns. When asked about these transactions during depositions, Delia’s employees repeatedly asserted their Fifth Amendment right to remain silent. Eight of these guns have already been recovered by the Philadelphia Police Department. Jointly, these guns have been connected to 13 separate shootings, with several individual guns each connected to multiple shootings. The guns have also been used to facilitate the illegal drug trade in Philadelphia. The City’sdamages and nuisance abatement experts concluded, and were prepared to testify, that Delia’s owed the City over $13 million in damages: over $3 million in compensatory damages and close to $10 million in abatement damages. This figure did not include additional punitive damages that the City intended to seek at trial.

The case against Delia’s was set to head to trial in May. But on May 1, 2026, the company filed for Chapter 7 bankruptcy in the United States Bankruptcy Court of the Eastern District of Pennsylvania. A new company, RMS Sporting and Accessories, Inc., run by different owners, is now doing business at the location as Delia’s Gun Store. 

The City has settled with the two remaining defendants in the case: 

• Frank’s Gun Shop & Shooting Range LLC, formerly located in Northeast Pennsylvania, was the source of 264 crime guns recovered in Pennsylvania from 2015-2019, and was alleged to have sold at least 48 guns to at least 15 different straw purchasers between April 2018 and December 2021. During the pendency of the litigation, Frank’s Gun Shop’s firearms license was revoked, in part due to its facilitation of straw purchasing. Pursuant to the settlement agreement, Frank’owner and former manager have agreed not to participate in the firearms business again.
  
• WRT Management, Inc.—which formerly did business as Tanner’s Sports Center Inc. in Jamison, PA., was the source of 239 crime guns recovered in Pennsylvania between 2015 and 2019, and was alleged to have sold at least 79 guns to at least 11 different straw purchasers between April 2019 and May 2021. Pursuant to the settlement agreement, WRT’s owner has agreed not to participate in the firearms business again. In addition, WRT’s has assigned all of its rights to insurance coverage to the City, up to an amount of $11.9 million.

More information about the lawsuit, including the court’s decisions, can be found here.

For interviews or to learn more, please don’t hesitate to reach out to press@everytown.org.