Avon Files for Bankruptcy Over Debt from Talc Lawsuits
Legislation & Litigation
Written by Travis Rodgers | Edited By Amy Edel
Avon Products Inc. has filed for bankruptcy as it faces 200 lawsuits related to its talc-based products. Plaintiffs claim their cancer diagnoses are the result of asbestos contamination in the company’s products. According to an Avon press release, the Chapter 11 bankruptcy protection move is meant to “address its debt and legacy talc liabilities.”
The company’s operating businesses and international operations won’t be part of the bankruptcy proceedings. Only Avon Products, the U.S.-based “non-operational” holding company, which handles overseas marketing, is filing.
A holding company is a parent company of several smaller business entities. This structure is used to protect a business’ assets, separating the debts of one specific piece from the company’s other parts.
In addition to the Chapter 11 news, Avon also announced it’s entered into an agreement to sell its equity interests in the company’s non-U.S. operations for $125 million with Natura & Co. Brazil-based Natura purchased Avon Products Inc. in 2020.
Natura’s latest acquisition would be in the form of a credit bid, which is when a creditor uses its claim against a debtor in an auction rather than paying cash. This move will be subject to a court-supervised auction process.
Avon Product Inc. Chairperson John Dubel said in a statement: “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.”
Kristof Neirynck, chief executive officer of Avon, added: “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.”
The bankruptcy plans and sale to Natura don’t include The Avon Company. LG Household & Health Care Ltd. operates the Avon brand in the U.S. The Avon Company isn’t affiliated with other Avon entities.
Avon Cancer Lawsuits
Avon is a defendant in hundreds of talc lawsuits. Plaintiffs attribute their cancer to the use of the company’s talc-based cosmetics and personal hygiene products. The lawsuits argue asbestos-contamination compromised the safety of Avon’s products.
The company denies claims that its talc is responsible for plaintiffs’ injuries, claiming “only uses cosmetic grade talc which has been tested to confirm that it does not contain asbestos.” However, juries have disagreed in some key cases.
Rita-Ann Chapman, an Arizona woman, was awarded $52.1 million in 2022. She developed mesothelioma, which she attributed to using Avon products for most of her life.
In 2024, a jury awarded $24.4 million to the family of a Chicago area mesothelioma survivor. Their lawsuit claimed Cipriano Ramirez developed pleural mesothelioma from asbestos-contaminated talc exposure when he worked as a janitor at Avon’s manufacturing facility in Illinois in the 1980s. Talcum powder is a soft mineral added to many products like baby powder, cosmetics and deodorant to absorb moisture and reduce friction. Asbestos, also a mineral, can easily contaminate talc. Exposure to asbestos is the primary cause of mesothelioma and other serious diseases.
