The owner of Avon in the UK, Europe and Latin America has filed for bankruptcy in a bid to address US$1bn of debt, which includes liabilities attached to lawsuits alleging that talcum powder products caused cancer.
Avon Products Inc (API), a subsidiary of Brazilian beauty conglomerate Natura, explained it had filed for Chapter 11 bankruptcy protection to enable it to tackle its debt in an “orderly manner”. Natura has proposed to buy back its trading operations outside the US for US$125mn (£97mn) after the bankruptcy process is complete.
“We remain focused on advancing our business strategy internationally, including modernising our direct selling model and reigniting the brand to accelerate growth,” said Kristof Neirynck, chief executive officer of Avon.
The beauty retailer uses talc in face powders and eye shadows. Lawyers have argued there is a link between talc and cancer, and claim Avon manufactured products that were contaminated with asbestos. Avon has denied the claims, arguing it “only uses cosmetic grade talc, which has been tested to confirm that it does not contain asbestos”.
Avon International’s, head of purpose and sustainability, Natalie Deacon stressed in a recent exclusive interview that the beauty retailer was “focusing on how we can make material switches or ingredient switches that are kinder to people and planet, and where performance isn’t impacted, or performance is even better”.
Last year, Avon partnered with Cruelty Free International, receiving approval under its Leaping Bunny Programme for cruelty free products. To obtain the approval, Avon’s entire supply chain has been rigorously audited, to ensure compliance with Leaping Bunny’s strict criteria.
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox and why not follow us on LinkedIn to receive the latest updates on our research and analysis.
