The motion was filed with the court on August 12. It was filed by Avon Products Inc., a subsidiary of Natura & Co., which in 2020 bought Avon's business outside North America, i.e. in Europe, Asia and Latin America. It paid $125 million for it.
The decision follows a flood of lawsuits over talc used in Avon cosmetics, which was alleged to cause cancer.
Avon's Troubles
"Despite Natura's efforts, Avon Products Inc. was burdened with more than $1.3 billion in debt, including $78 million in liabilities related to talc-related lawsuits," Forbes reports.
In the U.S. and Canada, Avon is owned by the Korean corporation LG Household & Health Care. Natura has already offered to buy Avon shares outside the United States for $125 million after the bankruptcy process is complete. The move would allow Natura to regain control of Avon's international operations while shedding some financial liabilities.
Lawsuits are not the only issue that contributed to the company's bankruptcy. Forbes pointed to the company's inability to adapt to a changing market.
Avon in Poland and Europe without changes. Cosmetics are safe
Avon offices outside the United States continue to operate independently and without disruption.
We also received an official statement from the Avon brand.
– The lawsuits in the United States regarding talc in Avon products relate to products sold in this market before 2016. We believe that the allegations regarding their safety are completely unfounded and we are defending ourselves against them in court. Because this legal process concerns only our holding company Avon Products, Inc., Avon's operations outside the United States are not affected by the proceedings and will not be affected. This means that nothing changes for our customers, associates, consultants or other stakeholders in Poland. At Avon, everything remains the same – we continue to implement our strategic initiatives while providing customers around the world with the same cosmetic offer they know and love – the Avon Cosmetics Poland press office reported.
– We want to emphasize that the safety of our products is a priority for us, which is why we only use cosmetic talc that has passed tests confirming the absence of asbestos. This natural mineral is widely used in the cosmetics industry. Avon strictly complies with all regulations regarding ingredients and safety, and each of our cosmetics is subjected to rigorous testing, so it can be used without worries – it added.
