AUSTRALIA
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The Salvation Army is the main beneficiary of donations of disused clothing items, which are people are led to believe, normally, sold through its thrift shops. The process is meant both to provide cheap clothing, and to yield profits for the organisations other charitable activities. Recycling donated clothing is both very profitable, and very competitive – so much so that many charitable groups have brought in the professionals.
It is not known how the business operates in Australia, because the Salvation Army does not offer up the information, and has no obligation to provide it. However, due to an investigation by the Guardian newspaper, in the U.K. something of the murky world of clothing recycling has been revealed.
Most people assumed, since there was nothing to say otherwise, that all profits returned to the Salvation Army. Not so, apparently, although the Salvation Army accused the Guardian of “selective reporting”. The professionals the U.K. Salvation Army brought in were Kettering Textiles. The involvement with this company goes back over 20 years.
The Salvation Army Trading Company looks after their business interests in the U.K. While they technically have an obligation under British charity laws to get the best value possible, it is not required to put anything to tender. The clothing recycling business was not put to tender, but simply awarded to Kettering, whose 78% major shareholder, Nigel Hanger, just happened to be a member of the board of the Salvation Army Trading Company (SATCoL). Kettering has the exclusive contract to sell the donated clothing.
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