Avon, the once-mighty direct sales company thanks to its army of door-to-door saleswomen, is filing for bankruptcy amid a mountain of lawsuits alleging talcum powder in its products causes cancer.
Avon Products, the US-based “non-operational” holding company, is seeking Chapter 11 bankruptcy protection “to address its debt and legacy talc liabilities,” the company said in a press release.
Avon, once valued at around $21 billion, ceased selling products in the US in 2016 when the parent company divested its North American-based business. The company remains active in international markets.
The beauty brand uses talc, a mineral that has been linked to cancer, in face powders and eye shadows.
In recent years, some 200 lawsuits have been filed against Avon that accuse the company of selling talc products that were contaminated with asbestos — another carcinogen.
John Dubel, chair of Avon Products, said the bankruptcy filing “will maximize the value of our assets and enable us to address our obligations in an orderly manner.”
“We remain focused on advancing our business strategy internationally, including modernizing our direct selling model and reigniting the brand to accelerate growth,” added Avon CEO Kristof Neirynck, who took over earlier this year.
In December 2022, a Los Angeles jury ordered Avon to pay more than $50 million to an Arizona woman who said she was diagnosed with cancer after she used cosmetic products that contained talc which was tainted with asbestos.
Last month, a Chicago-area man who worked as a janitor at an Avon manufacturing plant in Illinois was awarded $24.4 million by a jury after he was diagnosed with mesothelioma.
Those verdicts followed pharmaceutical giant Johnson & Johnson agreeing to a $6.5 billion settlement earlier this year following claims that its talc-based baby powder was responsible for ovarian cancer diagnoses.
The $350 billion New Jersey-based company also considered a bankruptcy filing in order to deal with the tens of thousands of lawsuits that have been filed by those who say they developed illnesses by using its products.
J&J and Avon have both denied claims that their talc products cause cancer.
The brand has said that it “only uses cosmetic grade talc which has been tested to confirm that it does not contain asbestos.”
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