Avon Cosmetics has filed for bankruptcy! The company Avon cosmetics said on August 14 that it had filed for bankruptcy in the United States to address its debt and legal liabilities arising from lawsuits alleging that its talc-based products were contaminated with cancer-causing substances.
The firm has begun the process of requesting Chapter 11 protection from the Delaware District Bankruptcy Court (USA), which allows companies to continue operating while they develop a plan to pay their debts.
“Avon’s operating businesses outside the U.S., which continue to advance strategic initiatives, are not part of the Chapter 11 proceedings, and operations continue as usual in Avon’s international markets,” the company clarified in a press release.
Avon Cosmetics Outside the United States
Brazil-based Natura & Co. acquired Avon in 2020, signing a deal to buy equity stakes in the cosmetics firm’s operations outside the United States for $125 million.
The Brazilian group announced a commitment to inject capital into the company with $43 million as debtor in possession, which will provide “sufficient liquidity to finance Avon Products’ obligations during the process.”
“We remain focused on advancing our global business strategy, including modernizing our direct selling model and reviving the brand to accelerate growth,” said Kristof Neirynck, Avon’s chief executive officer.
In December 2022, a Los Angeles jury ordered Avon to pay more than $50 million to an Arizona woman who said she was diagnosed with cancer after using cosmetic products containing asbestos-contaminated talc.
The sale of Avon in Venezuela
In June 2022, the company issued a statement on its website informing its customers and sellers that the shares of Avon Cosmetics de Venezuela CA were transferred to a business group with Venezuelan capital called Venovu.
“We warmly greet the representatives who in these years have found an opportunity for entrepreneurship, empowerment and improvement thanks to the independent marketing of Avon products. We also thank suppliers, consumers and the general public,” the company wrote in the statement. statement.
With information from El Diario
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2024-08-17 15:07:16
