Written on: August 16, 2024 by SprayTM
Avon Products, Inc. (API), a U.S.-based non-operational holding company of the Avon beauty brand, has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to address its debt and legacy talc liabilities. API has not sold products in the U.S. since it divested its North America business in 2016, but remains the holding company of the brand’s non-U.S. operating entities.
None of Avon’s operating businesses outside the U.S. are not part of the Chapter 11 proceedings, and it is business as usual in Avon’s International markets as the brand advances strategic initiatives.
Brazil-based Natura &Co, which acquired Avon in 2020, has entered into an agreement to purchase the equity interests in Avon’s non-U.S. operations for $125 million in the form of a credit bid.
Reflecting its continued belief in the Avon brand, Natura &Co has committed up to $43 million in debtor-in-possession financing that, subject to Court approval, will provide sufficient liquidity to fund API’s obligations during the sale process.
The bankruptcy filing will not impact the business of The Avon Co. a direct seller of beauty products in the U.S., Canada and Puerto Rico. As an independent entity, The Avon Co. has no affiliation to API.
“We understand there is confusion about our business structure and want to reassure our Representatives and customers that The Avon Co. is operating as usual,” said CEO Sun Moon.
“The Avon Co. has charted its own course under our parent company, LG H&H, and we remain committed to providing outstanding products and services while pursuing growth and innovation in the US, Canada and Puerto Rico.”
