Avon

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 &Co. The Chapter 11 plan was confirmed on September 24, 2025, and became effective on October 7, 2025. Natura &Co acquired Avon's assets through a credit bid of $125 million 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 &Co acquired Avon's assets through a credit bid of $125 million. Natura &Co is a Brazilian beauty company publicly traded on the B3 stock exchange in Brazil.

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 &Co, a Brazilian beauty conglomerate, completed its acquisition of Avon for approximately $3.7 billion. 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 &Co served as the stalking horse bidder with a credit bid of $125 million. 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.

Avon has implemented sustainability initiatives focused on cruelty-free product development, sustainable packaging, and ethical business practices across its global beauty operations. The company has established a strong position in cruelty-free beauty products and continues to advance environmental sustainability initiatives despite recent corporate restructuring.

The company's environmental strategy includes sustainable packaging initiatives, reducing plastic waste in product packaging, and improving the environmental footprint of its manufacturing facilities. Avon has committed to increasing the use of recycled materials in packaging and reducing single-use plastics across its product lines.

In ethical business practices, Avon maintains comprehensive programs for responsible sourcing, supplier ethics, and fair labor practices throughout its global supply chain. The company has established supplier codes of conduct that address environmental standards, labor practices, and business ethics for raw material suppliers and manufacturing partners.

Avon's cruelty-free position represents a significant ethical commitment in the beauty industry. The company does not test its products or ingredients on animals and maintains this policy across all markets where it operates. This cruelty-free stance has become a key differentiator for Avon in the competitive beauty market and aligns with growing consumer demand for ethical beauty products.

Avon has received recognition for its beauty innovation, direct-sales leadership, and corporate social responsibility initiatives throughout its long history in the beauty industry.

• Beauty Industry Awards: Multiple recognitions for product innovation in color cosmetics, skincare, and fragrance categories from industry publications and beauty associations.
• Direct Sales Leadership: Recognition for pioneering and maintaining the direct-sales model in the beauty industry, with awards for sales representative training and empowerment programs.
• Corporate Social Responsibility: Recognition for breast cancer awareness programs through the Avon Foundation for Women and other community engagement initiatives supporting women's health and empowerment.
• Brand Recognition: Consistent ranking among the most recognized beauty brands globally, particularly in emerging markets where Avon maintains strong consumer loyalty.
• Product Innovation: Awards for specific product lines including the Anew anti-aging skincare collection and various fragrance launches that have achieved commercial success and critical acclaim.

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 also 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 also 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 to changing market conditions while maintaining its core direct-sales approach.