The Natural Products Association (NPA) has filed for voluntary bankruptcy. According to Reuters, it was filed in Wilmington, Delaware on 19 August and was instigated to provide time for the organisation to focus on adding members and advocacy.Headquartered in Washington DC, NPA is a nonprofit that represents the interests of manufacturers and retailers of the natural products industry, which includes organic and health foods, dietary supplements, natural ingredient cosmetics, and other similar products.
The statement from the NPA on financial restructuring explained: “After exploring a number of alternatives, the Board of Directors of the Natural Products Association (NPA) has made the strategic decision to file a voluntary petition under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware in order to effectuate a financial restructuring of the organization. Our Board concluded that this was the best and most expeditious way to proceed and to ensure that NPA goes forward as a stronger and more financially sound organisation.”
We are proud to be the oldest and largest non-profit dedicated to the natural products industry and it will be business as usual as we proceed through the financial restructuring
The statement went on to say that the organisation expects the filing to have no impact on day to day operations and the work the NPA pursues on behalf of its over 1,000 members.
“We are proud to be the oldest and largest non-profit dedicated to the natural products industry and it will be business as usual as we proceed through the financial restructuring, with no changes to our activities, initiatives or interaction with members and government officials,” the statement added.
The company said the decision to financially restructure through a Chapter 11 filing was driven largely by recent operational deficits at the NPA, namely the six years of losses, and the organisation’s involvement in an arbitration action.
“The NPA expects to quickly emerge from this process and continue to aggressively advocate on behalf of the retailers, manufacturers, wholesalers and distributors it represents across the food, dietary supplement and health/beauty aid sectors,” the NPA stated.
“NPA had a successful first day in court and is looking forward to moving quickly through the financial restructuring process. Going forward it will be business as usual as we focus on the needs of our members and advocating for the interests of the Natural Products sector,” the statement ended.
