“Today’s action and the proposed sale of Avon’s non-U.S. operations will maximize the value of our assets and enable us to address our obligations in an orderly manner,” said API Chairperson John Dubel in a statement.
Natura has also pledged to settle any claims against it by Avon with a $30 million cash payment, the waiver of $530 million in debt, and the assumption of costs related to the appeal of the California verdict, as well as the company’s defined-benefits retirement plan.
A Legacy Business Facing New Challenges
Founded in 1886, Avon is renowned for its “Avon lady” sales model, which accounted for 87% of its net revenue in 2023. Despite its historical success, Avon has struggled with declining revenues in recent years, attributed to inflationary pressures, the COVID-19 pandemic, the war in Ukraine, and increasing competition.
Avon Products filed for Chapter 11 to restructure its operations and address its liabilities, with Ankura Consulting Group serving as its financial adviser and Rothschild & Co as its investment banker. The company is legally represented by attorneys from Richards Layton & Finger PA and Weil Gotshal & Manges LLP.
