Avon Files for Bankruptcy to Address Talc-Related Lawsuits and Debt

The beauty brand's non-U.S. operations will continue as normal while the company restructures its financial obligations.

Avon's U.S. holding company filed for Chapter 11 bankruptcy due to $1.3 billion in debt and talc-related legal liabilities.
The company has not sold products in the U.S. since 2016, focusing instead on its international operations.
Brazilian parent company Natura & Co. plans to buy Avon's non-U.S. operations for $125 million, pending court approval.
Natura will provide $43 million in financing to support Avon during the bankruptcy process.
Avon's international business strategy includes modernizing its direct selling model and revitalizing the brand.