Avon Products has filed for Chapter 11 bankruptcy due to mounting legal pressures from over 200 lawsuits linked to its talc-based products. Plaintiffs claim that asbestos contamination in Avon’s cosmetics caused cancer, including mesothelioma. Avon denies the allegations, stating its talc is free from asbestos, but juries have awarded significant sums in recent cases. The US-based holding company responsible for Avon’s overseas marketing is filing for bankruptcy, while its operating businesses and international operations remain unaffected. This move aims to manage debt and address legal liabilities.
Avon has entered an agreement to sell its non-US operations to Natura in a $125 million credit bid. The sale, subject to a court-supervised auction, is expected to streamline Avon’s assets and obligations. Avon Chairperson John Dubel emphasized the company’s goal of maximizing asset value through the sale, while CEO Kristof Neirynck remains focused on modernizing Avon’s global direct selling model. The Avon Company, which operates in the US under LG Household and Health Care Ltd., is not involved in these proceedings.
