Will Avon’s bankruptcy affect the brand in Mexico?

MEXICO CITY (apro).- Avon Products Inc. (API) does not have bankruptcy filings in the United States, so its operations in international markets will continue as they have been, as is the case in Latin America.

This week, API announced that it had voluntarily filed for Chapter 11 bankruptcy protection in the U.S. District Bankruptcy Court for the District of Delaware to address claims arising from the use of talc, which has been linked to cancer, in its products.

Avon’s operations in Latin America are not part of the proceedings as they are run by Brazilian beauty company Natura, which acquired Avon’s international holdings in 2020. This means there will be no store closures, nor will it affect customers or representatives in the region.

Additionally, following the announcement of the U.S. company’s bankruptcy, Natura committed to provide $43 million in DIP (debtor-in-possession) financing and to make a $125 million offer to acquire Avon’s operations outside the United States through a court-supervised auction process, according to legal documents filed with the court.