Avon Products, Inc., which is otherwise known as Avon, is an Angolo-American multinational company known for its cosmetics, skincare, perfume, and personal care products that have filed for bankruptcy in the United States. Learn about which products are carcinogenic and when they were withdrawn.
Avon Product Inc., Facing Waves of Lawsuits
The famous skincare and beauty brand, which is known for its door-to-door saleswoman, has filed for bankruptcy after facing a wave of lawsuits alleging talc in its products, which causes cancer.
The beauty brand company filed for Chapter 11 in Delaware on Monday. Avon Products is seeking to address the 386 individuals related to talc cases, this is based on its petition.
The firm has already incurred a total cost of defending personal injury lawsuits and settlements that is over $225. The company claims that they do not have sufficient liquid to settle these numerous cases. Philip Gund, who is the chief restructuring offer, said in court filings that the beauty company is expecting the number of lawsuits to continuously increase due to the absence of a permanent solution.
Avon Products is the latest company to seek bankruptcy to deal with the present lawsuits emanating from the sales of talc products. Johnson & Johnson, on the other hand, has tried to settle with plaintiffs, using the bankruptcy a couple of times, but they have not had a win yet.
Avon Products sold its US operations in 2016, now considered a bankrupt entity, the brand is owned outside the United States as well as its international business. With $1.3 billion of debt, which is mostly owned by Brazil-based Natural & Co., which acquired it in 2020.
The Acon products’s assets will be marketed as part of the Chapter 11 filing
The Acon products’s assets will be marketed as part of the Chapter 11 filing, with Natura willing to buy it for about $125 million in the absence of a higher offer. The Brazilian company is set to clear $530 million as part of its debt as well as provide an additional $43 million that will be used to fund the bankruptcy, This information is according to the filing.
The Avon is currently owned by LG Household $ Health Care Led. It is important to note that the international operations are not part of the bankruptcy, and their operations are going on as usual.
Avon on Body powder
For decades, Avon products may have contained asbestos-contaminated talc. This puts workers and consumers at risk of asbestos exposure. After exposure, some people developed mesothelioma and other cancers. Avon has been facing litigation for knowingly selling products made with asbestos-contaminated talc
For many years Avon products have been alleged to have contained asbestos-contaminated talc. one the long run this puts the consumers and the workers in danger of being exposed to asbestos. After this exposure, people may develop mesothelioma and other cancers. Avon on the other hand has been facing legal wars for selling these products which led to the products being withdrawn.
