Avon has filed for bankruptcy after it was hit by a raft of claims alleging talcum powder in its goods can lead to cancer.
The brand’s owner in the UK, Europe and Latin America Avon Products Inc (API), a subsidiary of Brazilian beauty conglomerate Natura, explained it had filed for Chapter 11 bankruptcy protection to ward off the impact of upcoming lawsuits and debt pressures.
API said the process would enable it to deal with its debt obligations in an “orderly manner”.
The news comes amid a host of legal action against cosmetics brands, including Avon which has faced over 100 claims.
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Lawyers have alleged there is a link between cancer and talc, which Avon uses in its eye shadows and face powders.
However, the beauty retailer has repeatedly denied the allegations, insisting it “only uses cosmetic grade talc which has been tested to confirm that it does not contain asbestos”.
Avon bosses said its international sites would remain open despite litigation in the US, noting API was only the business’s holding company and that its operating businesses were not part of the Chapter 11 proceedings.
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