New York, NY — Avon Products has filed for Chapter 11 bankruptcy as it seeks to address mounting lawsuits and financial obligations linked to claims that its talc-based products caused cancer. The decision marks a significant turn for the beauty giant, which is well-known for its iconic door-to-door sales model.
Despite selling its North American business in 2016, Avon Products remains burdened by substantial debts and legal liabilities, according to a recent report by The Wall Street Journal. The company has allocated over $225 million to defend against legal claims and settle disputes related to its talc products.
Avon’s financial troubles extend beyond legal battles. The company faces more than $1 billion in debts to lenders and bondholders. Among its creditors is Natura, a Brazil-based personal care brand and one of Avon’s lenders. Natura has offered financial support and expressed interest in leading the bid for Avon’s assets as the company navigates the bankruptcy process.
As Avon Products proceeds with its Chapter 11 filing, it aims to restructure its finances and address its long-standing liabilities while continuing its operations.
