Avon Products, Inc. (API), a U.S.-based non-operational holding company of the Avon beauty brand, has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to address its debt and legacy talc liabilities.
Avon’s operating businesses outside the U.S., which continue to advance in strategic initiatives, are not part of the Chapter 11 proceedings, and it is business as usual in Avon’s international markets.
API has not sold products in the U.S. since it divested its North American business in 2016 but remains the holding company of the brand’s non-U.S. operating entities.
Natura &Co acquired Avon in 2020 and has agreed to purchase the equity interests in Avon’s non-U.S. operations for $125 million in a credit bid, subject to a Court-supervised auction process.
Natura &Co has committed up to $43 million in debtor-in-possession financing that, subject to court approval, will provide sufficient liquidity to fund API’s obligations during the sale process.
Kristof Neirynck, Chief Executive Officer of Avon, said,
“We remain focused on advancing our business strategy internationally, including modernizing our direct selling model and reigniting the brand to accelerate growth. 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.”
John Dubel, API’s Chairperson, said,
“Today’s action and 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.”
Note that The Avon Company, which is the Avon brand in the U.S. currently owned by LG Household & Health Care, is not affiliated with any other Avon entity and is not part of the Chapter 11 proceedings.
Avon’s operating businesses outside the U.S., which continue to advance in strategic initiatives, are not part of the Chapter 11 proceedings, and it is business as usual in Avon’s international markets.
API has not sold products in the U.S. since it divested its North American business in 2016 but remains the holding company of the brand’s non-U.S. operating entities.
Natura &Co acquired Avon in 2020 and has agreed to purchase the equity interests in Avon’s non-U.S. operations for $125 million in a credit bid, subject to a Court-supervised auction process.
Natura &Co has committed up to $43 million in debtor-in-possession financing that, subject to court approval, will provide sufficient liquidity to fund API’s obligations during the sale process.
Kristof Neirynck, Chief Executive Officer of Avon, said,
“We remain focused on advancing our business strategy internationally, including modernizing our direct selling model and reigniting the brand to accelerate growth. 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.”
John Dubel, API’s Chairperson, said,
“Today’s action and 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.”
Note that The Avon Company, which is the Avon brand in the U.S. currently owned by LG Household & Health Care, is not affiliated with any other Avon entity and is not part of the Chapter 11 proceedings.
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