Oldest US natural product trade group seeks Chapter 11 bankruptcy

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Oldest US natural product trade group seeks Chapter 11 bankruptcy

On Monday, the 19th of August 2019, Washington D.C.-based Natural Product Association, which claimed to be the largest alongside oldest not-profit organization engaged in the US natural product industry, had filed for a Chapter 11 bankruptcy, citing six consecutive years of losses alongside an expensive legal dispute with one of its former chief financial officers.

Besides, the Chapter 11 bankruptcy case was filed in US bankruptcy court in Wilmington, Delaware, while Natural Product Association’s Chief Executive, Daniel Fabricant had been quoted saying in the filing that the bankruptcy filing would proffer a breather for the oldest US-based trade group focused entirely on natural products.

According to the court documents, founded back in the 1936s, the 83-year-old non-profit organization had more than 1,000 members engaged in retailing, manufacturing, wholesaling and distribution of natural foods, dietary supplements, beauty aids and health products at more than 10,000 locations across the United States.

Aside from six straight years of operations in losses, the nonprofit also held its former Chief Financial Officer, Brent Weickert’s disputed arbitration award accountable behind its latest bankruptcy filing, as Weickert had been holding the company’s largest unsecured claim worth of $780,179 awarded by a disputed arbitration.