Avon, the once-mighty direct sales company once valued at around $21 billion thanks to its army of saleswomen who hawked beauty items door-to-door, is filing for bankruptcy as it looks to get out from under a mountain of lawsuits alleging talcum powder in its products causes cancer.
Avon Products, the US-based “non-operational” holding company, is seeking Chapter 11 bankruptcy protection “to address its debt and legacy talc liabilities,” the company said in a press release.
Avon ceased selling products in the US in 2016 when the parent company divested its North American-based business. The company remains active in international markets.
The beauty brand uses talc, a mineral that has been linked to cancer, in face powders and eye shadows.
In recent years, some 200 lawsuits have been filed against Avon which has been accused of selling talc products that were contaminated with asbestos — another chemical that has been blamed for making people sick.
In December 2022, a Los Angeles jury ordered Avon to pay more than $50 million to an Arizona woman who said she was diagnosed with cancer after she used cosmetic products that contained talc which was tainted with asbestos.
Last month, a Chicago-area man who worked as a janitor at an Avon manufacturing plant in Illinois was awarded $24.4 million by a jury after he was diagnosed with mesothelioma.
Earlier this year, pharmaceutical giant Johnson & Johnson agreed to a $6.5 billion settlement following claims that its talc-based baby powder was responsible for ovarian cancer diagnoses.
The $350 billion New Jersey-based company also considered a bankruptcy filing in order to deal with the tens of thousands of lawsuits that have been filed by those who say they developed illnesses by using its products.
J&J and Avon have both denied claims that their talc products cause cancer.
The brand has said that it “only uses cosmetic grade talc which has been tested to confirm that it does not contain asbestos.”
John Dubel, chair of Avon Products, said the bankruptcy filing “will maximize the value of our assets and enable us to address our obligations in an orderly manner.”
“We remain focused on advancing our business strategy internationally, including modernizing our direct selling model and reigniting the brand to accelerate growth,” Avon CEO Kristof Neirynck said.
“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.”
