An Avon training center in the Bronx (Wikipedia)
Remember the Avon Lady? That woman on TV who went door to door selling Avon Beauty products? Well, Avon may soon cease to exist as Avon Products, Inc., a U.S.-based holding company, filed for Chapter 11 bankruptcy to manage its debt and address legal claims related to talc-based products. While Avon’s U.S. operations were sold in 2016, the company remains the parent of Avon’s international businesses.
Avon’s operating businesses outside the U.S., which continue to advance on strategic initiatives, are not part of the Chapter 11 proceedings, and it is business as usual in Avon’s international markets. Brazil-based Natura &Co (B3 – NTCO3), which acquired Avon in 2020, has entered into an agreement to purchase the equity interests in Avon’s non-U.S. operations for $125 million in the form of a credit bid, subject to a Court-supervised auction process.
Kristof Neirynck, Chief Executive Officer of Avon, said, “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.”
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Avon Products, often simply referred to as Avon, is a global beauty company renowned for its cosmetics, skincare, perfume, and personal care products.
It’s one of the oldest and most recognizable brands in the world.
Founded in 1886, Avon pioneered the concept of direct selling, employing a vast network of independent sales representatives, often affectionately known as “Avon Ladies.” This model allowed the company to reach millions of customers, particularly in markets where traditional retail was limited.
While Avon has enjoyed significant success, it has also faced challenges. The rise of e-commerce and changing consumer preferences led to a decline in traditional door-to-door sales. In response, Avon has adapted its business model to include online sales and expanded its product range.
