Avon Products Inc Files for Chapter 11 Bankruptcy Amid Debt Crisis
Tuesday, 13 August 2024, 13:58
Avon Products Inc Bankruptcy Filing
Avon Products Inc (API), the owner of Avon in the UK, Europe, and Latin America, has recently initiated Chapter 11 bankruptcy proceedings as part of a strategy to address its financial challenges. The company is facing over $1 billion in debt, driven significantly by liabilities linked to ongoing lawsuits regarding talc-related health issues.
Key Points of the Bankruptcy Filing
- API is struggling with liquidity issues.
- There are 386 lawsuits alleging that talc in Avon products has caused cancer.
- The company was acquired by Natura in 2020, which has left it managing a complex financial situation.
Moving forward, this bankruptcy filing represents a critical step for Avon to restructure its debt and focus on regaining stability in its operations.
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