Court: U.S. Bankruptcy Court for the District of Delaware
Avon Products Inc., a U.S.-based “non-operational” holding company, announced Monday that it is seeking Chapter 11 bankruptcy protection to “address its debt and legacy talc liabilities.” In recent years, hundreds of talc lawsuits have been filed against Avon. Its court filings state the company no longer has “sufficient liquidity to litigate and/or settle” any other talc case and that Avon expects the number of lawsuits to “only increase absent a permanent solution.” Avon indicated it intends to address the talc claims against it “in an orderly manner” with the bankruptcy filing.
Avon is known for personal care products, including cosmetics and body powders. The company has not operated in the United States since 2016, though it remains responsible for legacy talc liabilities. Avon remains active in international markets as the holding company of several international entities, which were not part of Monday’s bankruptcy filing.
Significantly, Avon’s court filings also stated that Brazil-based company Natura & Co., which acquired Avon in 2020, entered into an agreement with Avon to purchase equity interests in Avon’s non-U.S. operations for $125 million and has committed up to $43 million in debtor-in-possession financing to provide liquidity to Avon’s obligations during the sale process.
An Avon spokesperson stated, “[t]oday’s [bankruptcy] action and the proposed sale of Avon’s non-US operations will maximize the value of our assets and enable us to address our obligations in an orderly manner.”
Goldberg Segalla’s Asbestos Case Tracker will continue to monitor this bankruptcy filing for additional updates.
Read the Bankruptcy Petition here.
Read the Motion for Joint Administration here.