None of Avon's Operations Outside the U.S. are Part of
Legal Proceedings
Business as Usual Across International Markets
as Brand Advances Strategic Initiatives
NEW
YORK, Aug. 12, 2024 /PRNewswire/ -- Avon
Products, Inc. ("API"), a U.S.-based non-operational holding
company of the Avon beauty brand,
today announced that it has initiated voluntary Chapter 11
proceedings in the U.S. Bankruptcy Court for the District of
Delaware to address its debt and
legacy talc liabilities. API has not sold products in the U.S.
since it divested its North
America business in 2016 but remains the holding company of
the brand's non-U.S. operating entities.
Avon's operating businesses
outside the U.S., which continue to advance on strategic
initiatives, are not part of the Chapter 11 proceedings, and it is
business as usual in Avon's
international markets.
Brazil-based Natura &Co (B3
– NTCO3), which acquired Avon in
2020, has entered into an agreement to purchase the equity
interests in Avon's non-U.S.
operations for $125 million in the
form of a credit bid, subject to a Court-supervised auction
process.
Reflecting its continued belief in the Avon brand, Natura
&Co has committed up to $43 million in
debtor-in-possession financing that, subject to Court approval,
will provide sufficient liquidity to fund API's obligations during
the sale process.
John Dubel, API's Chairperson,
said, "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."
Kristof Neirynck, Chief Executive
Officer of Avon, said, "We remain
focused on advancing our business strategy internationally,
including modernizing our direct selling model and reigniting the
brand to accelerate growth. Since becoming CEO earlier this year, I
am increasingly energized by our strengths and opportunities,
supported by our valued Associates and nearly 2 million
Representatives around the world."
Court filings are available at
https://dm.epiq11.com/AIOUSInc.
Note that The Avon Company, which is the Avon brand in the U.S.
currently owned by LG Household & Health Care Ltd., is not
affiliated with any other Avon
entity and is not part of the Chapter 11 proceedings.
Weil, Gotshal & Manges LLP is serving as legal counsel,
Ankura Consulting Group, LLC is serving as financial advisor, and
Rothschild & Co is serving as investment banker to API.
Media Contact for API:
Kekst CNC
Sherri L. Toub / Ruth Pachman / Daniel
Hoadley
Kekst-Avon@KekstCNC.com
Media Contact for Avon:
Joanna
Newark
media@avon.com
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SOURCE Avon Products, Inc.