{"id":48834,"date":"2024-08-14T21:31:16","date_gmt":"2024-08-15T01:31:16","guid":{"rendered":"https:\/\/lakelandgazette.info\/news\/?p=48834"},"modified":"2024-08-14T21:31:23","modified_gmt":"2024-08-15T01:31:23","slug":"avon-files-for-bankruptcy-after-hundreds-of-lawsuits-over-cancer-claims-and-drowning-in-1-3-billion-debt","status":"publish","type":"post","link":"https:\/\/lakelandgazette.info\/news\/2024\/08\/14\/avon-files-for-bankruptcy-after-hundreds-of-lawsuits-over-cancer-claims-and-drowning-in-1-3-billion-debt\/","title":{"rendered":"Avon files for bankruptcy after hundreds of lawsuits over cancer claims and drowning in $1.3 billion debt"},"content":{"rendered":"\n

AVON Products Inc. has filed for bankruptcy after multiple lawsuits and financial struggles.<\/p>\n\n\n

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The cosmetics company submitted its Chapter 11 filing in a Delaware court<\/a> on Monday.<\/p>\n\n\n\n

The cosmetics brand faces hundreds of lawsuits claiming talc in some products caused cancer Credit: Avon<\/p>\n\n\n\n

While known by many consumers for its door-to-door saleswomen and a vast array of products, Avon faced hundreds of lawsuits claiming that talc in some of its merchandise had cancer-causing properties, per Bloomberg Law<\/a>.<\/p>\n\n\n\n

At least 386 talc-related suits have been filed against the brand over the past few years, and Avon intends to address those claims with the bankruptcy filing.<\/p>\n\n\n\n

The talc cases resulted in about $225 million in expenses for legal defense costs and settlement payments.<\/p>\n\n\n\n

Philip Gund, chief restructuring officer for Avon, said in the court filings that the company no longer has “sufficient liquidity to litigate an\/or settle” any other cases.<\/p>\n\n\n\n

Gund added that Avon expects the number of lawsuits to “only increase absent a permanent solution.”<\/p>\n\n\n\n

The brand also has at least $1.3 billion in debt, most of which is owed to Natura & Co, a Brazil-based cosmetics company it acquired in 2020, per court documents<\/a>.<\/p>\n\n\n\n

Avon hasn’t operated in the United States since 2016, when it divested its entire North American business, but it remains the holding company of several entities internationally.<\/p>\n\n\n\n

Those entities continue to operate as usual and aren’t part of Monday’s bankruptcy filing.<\/p>\n\n\n\n

SAVING GRACE<\/p>\n\n\n\n

Natura & Co agreed to purchase the ownership share of Avon’s international operations for $125 million through a credit bid, but nothing will be confirmed until there’s a court-sanctioned auction, per a press release<\/a>.<\/p>\n\n\n\n

It would also dismiss the around $530 million Avon owes, and put up another $43 million for Avon as debtor-in-possession financing during the Chapter 11 proceedings, pending court approval.<\/p>\n\n\n\n

Avon’s newly-appointed CEO Kristof Neirynck said the company would move forward through the bankruptcy to keep its attention on international markets.<\/p>\n\n\n\n

“We remain focused on advancing our business strategy internationally, including modernizing our direct selling model and reigniting the brand to accelerate growth,” Neirynck said in the release.<\/p>\n\n\n\n

“Since becoming CEO earlier this year, I am increasingly energized by our strengths and opportunities, supported by our valued Associates and nearly 2 million Representatives around the world.”<\/p>\n\n\n\n

Avon’s bankruptcy filing comes amid several from various retailers and restaurant companies across the United States this summer.<\/p>\n\n\n\n

Today’s action the proposed sale of Avon’s non-U.S. operations will maximize the value of our assets and enable us to address our obligations in an orderly manner.<\/p>\n","protected":false},"excerpt":{"rendered":"

AVON Products Inc. has filed for bankruptcy after multiple lawsuits and financial struggles. The cosmetics company submitted its Chapter 11 filing in a Delaware court on Monday. The cosmetics brand faces hundreds of lawsuits… <\/p>\n","protected":false},"author":1,"featured_media":48835,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"14","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","inline_featured_image":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"wpai_generated_summary":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2,"attached_media":[{"id":48835,"url":"https:\/\/lakelandgazette.info\/news\/wp-content\/uploads\/2024\/08\/AVON_Logo-jpg.webp","type":"image\/jpeg"}]},"_wpas_customize_per_network":false},"categories":[14],"tags":[9439],"class_list":["post-48834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-avon-files-for-bankruptcy-after-hundreds-of-lawsuits-over-cancer-claims-and-drowning-in-1-3-billion-debt"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts\/48834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/comments?post=48834"}],"version-history":[{"count":1,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts\/48834\/revisions"}],"predecessor-version":[{"id":48836,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts\/48834\/revisions\/48836"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/media\/48835"}],"wp:attachment":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/media?parent=48834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/categories?post=48834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/tags?post=48834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}