Share it with your friends:
The company Avon Products declared bankruptcy in the United States.
Like Johnson & Johnson, it is facing a wave of lawsuits alleging that the talc in its products causes cancer.
The company has raised $225 million in payments to defend itself against 386 personal injury lawsuits.
Natura &Co., the Brazilian conglomerate that owns Avon, announced that its subsidiary Avon Products, Inc. (API) has initiated a Chapter 11 bankruptcy protection process. Bankruptcy Law of the United States, which seeks to manage pre-existing debts and liabilities, exclusively affects API and other non-operating subsidiaries in the US market.
The bankruptcy process would give the company time and opportunity to organize and pay its debts.
Despite financial problems, operations of Avon will continue to operate normally and no job cuts are expected.
Avon CEO Kristof Neirynck stressed that the company remains focused on advancing its international business strategy.
This includes the modernization of the direct sales model and the reboot of the brand toaccelerate growth.
Avon Products is a holding company that sold its U.S. operations in 2016, according to a statement.
The now bankrupt entity owns the brand outside the United States and its international business.