The owner of the beauty brand Avon in the UK, Europe and Latin America has filed for bankruptcy as it tries to off-load more than $1bn of debt, including millions of dollars in liabilities linked to lawsuits alleging that talc in its products caused cancer . Avon Products Inc (API), a subsidiary of Brazil’s Natura which bought Avon’s non-North American trading businesses in 2020, has filed for Chapter 11, the American version of administration. The company said that process would allow it to address its debt obligations in an “orderly manner”, and has proposed to buy back its trading operations outside the US for $125m (£97m) after the bankruptcy process is complete.
API has already spent $225m in costs defending itself against personal injury lawsuits and settlement payments and said it does not have “sufficient liquidity” to defend or settle the 386 individual talc-related cases. API has total debts of $1.3bn and liabilities relating to talc claims worth $78m.
Avon’s beginnings trace back more than 135 years to David H McConnell, a travelling book salesman from New York. In the UK it was known for its “Ding dong! Avon Calling” advertising slogan , which was retired in the 1960s, and door-to-door sales agents. Late last year, the company said it planned to open its first physical UK stores with its sales representatives running the “mini beauty boutiques” as franchisees.
Avon’s operations, including its Northampton-headquartered UK arm, will continue.