A Delaware bankruptcy judge has officially confirmed the Avon Chapter 11 plan, solidifying a path forward for the embattled cosmetics brand as it navigates billions in debt and a storm of talc-related lawsuits.

U.S. Bankruptcy Judge Craig Goldblatt entered the confirmation order Wednesday, just days after verbally signaling his approval. The plan establishes a trust designed to compensate talc claimants through insurance proceeds—a compromise hammered out after repeated pushback from insurers concerned their rights would be undercut.

Insurance Battles and “Modest” Fixes

Judge Goldblatt, in August, told Avon its proposal could move forward but needed “modest” refinements. His primary concern: ensuring that any insurance rights transferred to the trust would preserve their original terms and conditions.

By Monday’s status conference, Goldblatt assured Avon the plan was “good to go.” He accepted minor edits suggested by objecting insurers but dismissed most of their requested revisions as unnecessary. The approval marks the end of tense negotiations that stretched for months.

Avon’s $1.3B Debt and 386 Lawsuits

Avon filed for Chapter 11 protection in August 2024, citing $1.3 billion in debt and mounting legal pressure from 386 lawsuits alleging the company sold talc-based products in the U.S. before 2016 that caused serious injuries.

Adding to the upheaval, in December the bankruptcy court approved Avon’s $125 million sale to the Brazilian parent company of Natura & Co., further reshaping the cosmetics giant’s future.

What’s Next for Avon

With the Chapter 11 plan now confirmed, the newly established talc trust will become the focal point for claimants seeking compensation. The confirmation signals a significant shift in Avon’s long-running legal battle, giving the company a chance to emerge from bankruptcy while addressing decades-old liabilities.

The cosmetics icon—once synonymous with door-to-door sales and pink Cadillacs—now faces its most delicate makeover yet: rebuilding trust with consumers and survivors while restructuring its business under new ownership.