Avon’s parent group, Avon Products, has filed for bankruptcy following mounting debt and lawsuits alleging talcum powder in its products causes cancer.
The group said it recently filed for Chapter 11 bankruptcy protection in the US to offload more than $1bn (£778m) in debt and impacts from lawsuits.
Lawyers have argued there is a link between Avon talc products and cancer, and claimed the beauty giant manufactured products contaminated with asbestos.
Avon has consistently denied the claims and said it only uses “cosmetic grade talc which has been tested to confirm that it does not contain asbestos”.
Natura, which bought Avon’s non-North American trading business in 2020, has suggested buying back its trading operations outside the US for $125m (£97m) once the bankruptcy process is complete.
The bid will be subject to a court-supervised auction process and Natura will control Avon’s businesses and debts if successful.
Natura has built up debts of its own after spending around £1.6bn on the pruchase of Avon’s non-North American business, and it recently sold off The Body Shop.
Avon’s operations will continue to trade as usual and no job cuts are expected.
Avon chief executive Kristof Neirynck said: “We remain focused on advancing our business strategy internationally, including modernising our direct selling model and reigniting the brand to accelerate growth.”
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