Avon Products, Inc., the US-based non-operational holding company of the Avon beauty brand, announced it has initiated voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware to address its debt and legacy talc liabilities. Avon Products has not sold goods within the US since it divested its North American business segment in 2016. However, Avon Products remains the holding company for the brand’s non-US operating entities.
Avon’s operating businesses outside the U.S., which continue to advance on strategic initiatives, are not part of the Chapter 11 proceedings, and it is business as usual in Avon’s international markets.
Brazil-based Natura &Co, which acquired Avon in 2020, has entered into an agreement to purchase the equity interests in Avon’s non-US operations for $125 million in the form of a credit bid, subject to a Court-supervised auction process.
“We remain focused on advancing our business strategy internationally, including modernizing our direct selling model and reigniting the brand to accelerate growth,” said Kristof Neirynck, Avon Chief Executive Officer. “Since becoming CEO earlier this year, I am increasingly energized by our strengths and opportunities, supported by our valued associates and nearly 2 million representatives around the world.”
The Avon Company, which is the Avon brand in the US currently owned by LG Household & Health Care Ltd., is not affiliated with any other Avon entity and is not part of the Chapter 11 proceedings.
