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MEXICO CITY (APRO) – Avon Products Inc.’s (API) operations outside the United States are not part of the country’s bankruptcy proceedings, so its business will continue as usual in international markets, including Latin America.
API reported this week that it had initiated voluntary Chapter 11 amparo proceedings in Delaware Bankruptcy Court to resolve claims arising from the use of talc in its products that has been linked to cancer.
Avon’s operations in Latin America are not part of the proceedings as they are being looked after by Brazilian beauty company Natura following its acquisition of Avon’s international interests in 2020. This means there will be no store closures and no impact on its customers or representatives in the region.
In addition, Natura pledged $43 million in DIP (debtor in possession) financing after the U.S. company declared bankruptcy, and made an offer of $125 million to acquire Avon’s business outside the U.S. The auction process is supervised by the court, according to legal documents filed in court.
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