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Avon Products files application Chapter 11 Bankruptcy The cosmetics brand is seeking to address liabilities and legal responsibility arising from lawsuits that allege its talc-based products are contaminated with carcinogens.
The holding company has not sold Avon products in the United States since selling its North American operations in 2016, but continues to serve as the holding company for Avon-branded entities outside the United States.
Avon is Sell cosmeticssalespeople selling skin care, fragrance and personal care products, and the company’s door-to-door salespeople.
“Today’s actions and the proposed sale of Avon’s international operations will maximize the value of our assets and enable us to meet our obligations in an orderly manner,” Avon Products Chairman John Dubell said in a statement.
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Avon’s defunct U.S. holding company has filed for bankruptcy to address debts and legal liabilities. (Mario Tama/Getty Images/Getty Images)
“We are focused on advancing our business strategy internationally, including modernizing our direct sales model and revitalizing our brands to accelerate growth,” said Avon CEO Christophe Neirynck. “Since taking on the role of CEO earlier this year, I have been increasingly encouraged by the strength and opportunity of our company, supported by our valued employees and approximately two million distributors around the world.”
Avon’s operations outside the United States are Legal proceedings It will continue to operate normally while the process is running.
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Avon sold its North American business in 2016, and its non-U.S. operations are not involved in the bankruptcy filing. (Scott Eales/Bloomberg via Getty Images/Getty Images)
Natura & Company Brazil-based companies The company, which acquired Avon in 2020, has signed an agreement to acquire Avon’s shares of its non-U.S. businesses for $125 million in a credit bid following a court-supervised competitive process.
Natura has also committed to provide up to $43 million in financing, subject to court approval, to provide Avon Products with liquidity to meet its obligations during the sale process.
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The Avon Company is the Avon brand in the United States and is operated by LG Household and Healthcare Company, is not affiliated with any other Avon company, and is not subject to Chapter 11 bankruptcy proceedings.
