At the height of its success, the global beauty brand Avon was selling four lipsticks a second. Now, the talcum powder that once made the legacy label a worldwide hit is more closely aligned with its undoing. This week, following hundreds of lawsuits which allege the talc in its beauty products contained asbestos - causing cancer - Avon Products Inc declared bankruptcy.
While the company has continually denied the claims, saying it only uses “cosmetic-grade talc which has been tested to confirm that it does not contain asbestos”, it is now without “sufficient liquidity” to pay off the £1 billion (and counting) ($2.14b) it owes. In the interim, says Avon CEO Kristof Neirynck, they “remain focused on advancing our business strategy internationally, including modernising our direct selling model and reigniting the brand to accelerate growth”.
The company’s troubles started before the talc debacle. Founded in 1886, a decade ago it was “one of the top three beauty brands in the country”, according to its website - but it has struggled to retain its place in an industry in which products for every skin tone and type are available at the tap of a smartphone. “I don’t envy Avon right now,” says Ruby Hammer, makeup artist and founder of Ruby Hammer Beauty.
While she once loved its lipsticks and liners, and relied on its (now-discontinued) Mega Effects Mascara, she says Avon has been left, like many heritage outfits, to fight an uphill battle against “the pace and momentum of the newer younger brands dropping products and content continuously ...
there is so much noise, it is harder than ever to break through”..
