Avon Products, Inc.

What happened to Avon?
Avon Products Inc. filed for Chapter 11 bankruptcy in August 2024 to address talc-related litigation liabilities and facilitate its separation from Natura and Co. The Chapter 11 plan was confirmed on September 24, 2025, and became effective on October 7, 2025. Natura and Co acquired Avon's assets through a credit bid of 125 million dollars as part of the restructuring.

Is Avon still in business?
Yes. Avon continues to operate as a beauty and personal care company following its emergence from Chapter 11 bankruptcy in October 2025. The brand continues to sell cosmetics, skincare, fragrance, and personal care products through its direct-sales model.

Is Avon publicly traded?
No. Avon is no longer publicly traded following the Chapter 11 bankruptcy and restructuring that became effective on October 7, 2025.

Who owns Avon?
Following the Chapter 11 restructuring effective October 7, 2025, Natura and Co acquired Avon's assets through a credit bid of 125 million dollars. Natura and Co is a Brazilian beauty company publicly traded on the B3 stock exchange in Brazil under the ticker NTCO3.

When was Avon founded?
Avon was founded in 1886 by David H. McConnell as the California Perfume Company in New York. The company was renamed Avon Products in 1939.

Why did Avon file for bankruptcy?
Avon filed for Chapter 11 bankruptcy in August 2024 primarily due to significant liabilities from talc-related lawsuits alleging that Avon's talcum powder products caused cancer due to asbestos contamination. The bankruptcy process was used to resolve these liabilities through a structured settlement.

David H. McConnell founded the California Perfume Company in New York in 1886. McConnell developed a direct-sales model, employing women as independent sales representatives to sell fragrance and beauty products directly to consumers. The company was renamed Avon Products in 1939, inspired by Stratford-upon-Avon in England.

Throughout the 20th century, Avon expanded internationally, establishing operations across Europe, Latin America, Asia, and other regions. The company became one of the world's largest beauty companies. Avon went public in 1946 and was listed on the New York Stock Exchange. The company became known for its "Avon Calling" advertising campaigns and its model of empowering women through sales representative opportunities.

Avon faced increasing competition and operational challenges in the 2010s. In January 2020, Natura and Co, a Brazilian beauty conglomerate, completed its acquisition of Avon for approximately 3.7 billion dollars. Under Natura's ownership, Avon was integrated into a portfolio that also included The Body Shop and Aesop.

In August 2024, Avon Products Inc. filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware. The filing was driven by significant liabilities from talc-related lawsuits alleging that Avon's talcum powder products caused cancer due to asbestos contamination. Natura and Co served as the stalking horse bidder with a credit bid of 125 million dollars. The bankruptcy court confirmed Avon's Chapter 11 plan on September 24, 2025, and the plan became effective on October 7, 2025, approximately one year after the initial filing. Avon emerged from bankruptcy with its talc liabilities resolved through the plan.

In 2025, Natura and Co also sold The Body Shop to a consortium of investors and divested Aesop to L'Oreal in 2023 for approximately 2.5 billion dollars, streamlining its portfolio to focus on the Natura and Avon brands in Latin American and emerging markets.

Avon maintains a cruelty-free position, meaning the company does not test its products or ingredients on animals. This stance is a key differentiator in the beauty market and aligns with growing consumer demand for ethical beauty products.

The company's environmental initiatives include sustainable packaging efforts, reducing plastic waste, and improving the environmental footprint of its manufacturing facilities. Avon has committed to increasing the use of recycled materials in packaging.

Avon maintains supplier codes of conduct that address environmental standards, labor practices, and business ethics. The company requires suppliers to comply with responsible sourcing standards.

Avon is not a Certified B Corporation. Following the bankruptcy restructuring, sustainability reporting is limited as the company is no longer publicly traded and has reduced disclosure obligations.

Avon has received recognition for beauty innovation and direct-sales leadership throughout its history.

• Beauty Industry Awards: Multiple recognitions for product innovation in color cosmetics, skincare, and fragrance
• Direct Sales Leadership: Recognition for pioneering the direct-sales model in the beauty industry
• Corporate Social Responsibility: Recognition for breast cancer awareness programs through the Avon Foundation for Women
• Brand Recognition: Consistent ranking among the most recognized beauty brands globally, particularly in emerging markets
• Product Innovation: Awards for the Anew anti-aging skincare collection and fragrance launches

Avon faced significant talc-related litigation in the United States, with plaintiffs alleging that Avon's talcum powder products caused cancer due to asbestos contamination. These liabilities were a primary driver of the August 2024 Chapter 11 bankruptcy filing. The bankruptcy process was used to resolve these liabilities through a structured settlement, with the Chapter 11 plan confirmed on September 24, 2025, and effective October 7, 2025.

Avon's direct-sales model has faced regulatory scrutiny in various markets regarding its classification of sales representatives as independent contractors rather than employees, and regarding pyramid scheme allegations in some jurisdictions. The company has worked to address these concerns through compliance programs and operational adjustments.

The company has faced challenges related to changing consumer preferences and the rise of e-commerce, which have impacted the traditional direct-sales model. Avon has responded by enhancing its digital capabilities and adapting its business model while maintaining its core direct-sales approach.

The Chapter 11 bankruptcy process itself generated controversy, with some talc litigation plaintiffs arguing that the restructuring improperly shielded Avon from liability. The bankruptcy court overruled these objections and confirmed the plan.