Avon files for bankruptcy in face of 200 lawsuits linking its talc products to cancer
Avon Products Inc, 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 that markets the brands product overseas, is seeking Chapter 11 bankruptcy protection “to address its debt and legacy talc liabilities,” the company said in a press release.
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 Products 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 Products 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.”
In 2016, Avon Products divested its US, Canada and Puerto Rico-based business. Avon beauty products are sold in North America under the Avon Company umbrella.
Avon Company acts as an independent entity and is not affiliated with Avon Products.
“We understand there is confusion about our business structure and want to reassure our Representatives and customers that The Avon Company is operating as usual,” said Sun Moon, CEO of The Avon Company.
“The Avon Company has charted its own course under our parent company LG H&H and we remain committed to providing outstanding products and services while pursuing growth and innovation in the US, Canada and Puerto Rico.”
