The firm has clarified that its operating businesses outside of the country "are not part of the Chapter 11 proceedings," and that everything remains the same in Avon's international markets.
Avon Products (API), the non-operating holding company of the Avon home-delivered cosmetics brand, has voluntarily commenced proceedings in the U.S. Bankruptcy Court for the District of Delaware (United States) for Chapter 11 protection under U.S. law to address its debt and legacy legal disputes relating to the use of talc.
The firm, which has not sold products in the United States since it spun off its North American business in 2016, which was acquired by Cerberus Capital, remains the holding company for the brand outside the country.
In this regard, he said that Avon's operating businesses outside the United States "are not part of the Chapter 11 proceedings," and everything remains the same in Avon's international markets.
"The Avon Company, which is the Avon brand in the United States currently owned by LG Household & Health Care, is not affiliated with any other Avon entity and is not a party to the Chapter 11 proceedings," it said.
Likewise, the Brazilian group Natura & Co, which acquired Avon in 2020 and is API's largest creditor, has expressed its confidence in Avon and has announced a US$43 million (€39 million) commitment to finance API as a debtor in possession (DIP), which will provide sufficient liquidity to finance API's obligations during the process.
The South American company has also announced an agreement to acquire Avon's equity stakes in operations outside the United States in exchange for US$125 million (114 million euros) in the form of a credit offer, subject to an auction process supervised by the Court.
"Today's action and the proposed sale of Avon's operations outside the United States will maximize the value of our assets and allow us to address our obligations in an orderly manner," said John Dubel, president of API.
Avon CEO Kristof Neirynck said the company remains focused on advancing its international business strategy, including modernizing its direct sales model and rebooting the brand to accelerate growth.
