NEWTOWN, CT — The gun shop that is a defendant in a Sandy Hook school shooting lawsuit has filed for Chapter 7 bankruptcy.

Riverview Sales of East Windsor filed a motion in court July 27 to halt court proceedings regarding the gun shop as it goes through the bankruptcy process, according to court documents. Riverview Sales lists $825 in inventory and more than $140,000 in liabilities, including $101,000 in secured claims by creditors.

Riverview sold the AR-15 that was used in the Sandy Hook shooting that left 20 children and six educators dead. It is a defendant in a high-profile lawsuit filed by some family members of the victims. Distributor Camfour Inc. and gun manufacturer Remington Arms are also defendants.

Related: Judge Refuses to Delay Sandy Hook Gun Lawsuit The case is currently in the discovery process, and lawyers for Remington have moved to keep certain documents out of public view. It maintains that divulging what is proprietary information could hurt its business and gives competitors an unfair advantage.

The lawsuit filed by law firm Koskoff, Koskoff and Bieder argues that the Bushmaster AR-15 rifle shouldn't have been released to the public and belongs only in the hands of military and law enforcement personnel. It is being closely watched and has been mentioned several times throughout the presidential election season.

Riverview owner David E. LaGuercia was sentenced in March 2014 to three years of probation for violating federal firearms laws. The shop lost its federal firearms dealer license in December 2012 just days after the Sandy Hook shooting.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted an investigation of LaGuercia and Riverview and discovered approximately 300 examples of false or missing information in Riverview's acquisition and disposition records. The shop had poor record-keeping, inventory management and lax security, said U.S. Attorney Deirdre Daly.