Tag Archive for avon products

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Avon Products Files For Bankruptcy

by Team Business For Home • August 15, 2024 • 0 Comments

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

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Avon Products Hit With $40 Million Verdict

by Team Business For Home • December 18, 2022 • 0 Comments

Avon Products Inc. was ordered by a California jury to pay $10.3 million in punitive damages to a woman who blamed her cancer on talc in its cosmetics, in the first such case the company has lost in U.S. litigation.
The Los Angeles Superior Court jury that punished Avon Friday for hiding the risks that some of its talc-based powders can cause cancer had already awarded Rita Chapman $40 million in actual damages, bringing the total in the case to more than $50 million, according to court filings.
The $40 million award was intended to cover Chapman’s pain and medical costs tied to her battle with mesothelioma, a cancer specifically tied to asbestos exposure. Chapman alleged Avon’s powders contained asbestos-tainted talc that made her sick. The company – famous for its door-to-door saleswomen known as “Avon Ladies” – was acquired by Natura Cosmeticos SA in 2020.
“We are disappointed by this verdict and will vigorously pursue all available avenues to appeal,” Avon said in an emailed statement. “Avon is confident that it has strong grounds for appeal and will continue to defend its position.”
Avon faced almost 130 talc suits as of 2020, according to court records. That same year, the company said it

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Avon Products – Nasdaq Has Little Confidence In The Company

by Ted Nuyten • August 31, 2017 • 0 Comments

Independent stock research firm Zacks has published an report about Avon Products with the heading: Avon Products Plummets 30% in a Month: Is More Pain Ahead?
Zack’s conclusion: It would be advisable to stay away from the stock unless the success of its Transformation Plan starts to reflect in the company’s performance.
Business For Home confidential talks with Avon Top leaders confirm the main problem of Avon: an out-dated compensation plan and support structure, distributors switch to other opportunities.
Some high and low lights from the report:

We note that Avon has long been struggling owing to weak Active Representatives growth and adverse currency translations.
Avon has been incurring losses for the last two quarters.
Avon was hurt by decline in both Active Representatives and Ending Representatives across all the segments, barring Ending Representatives growth in North Latin America.
Avon faces intense competition from cosmetics products retailers, in domestic and international markets.
Globally, the company competes with products sold to consumers by other direct-selling and direct-sales companies and through the Internet, and against products sold through the mass market and prestige retail channels.
In such times of struggle, Avon’s Transformation Plan seems to be a ray of hope for the company but it is also failing to spark a

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Avon Named As One Of The Top 100 Companies For Working Mothers By Working Mother Magazine

by Tina Williams • September 28, 2015 • 0 Comments

Avon Products, Inc. (NYSE: AVP) today was named as the only beauty company selected by Working Mother magazine in its annual survey of the “100 Best Companies for Working Mothers.” This annual list recognizes companies that accommodate the needs of employees through a variety of family-friendly benefits and initiatives.

This year, Working Mother gave particular weight to three issues: flexible scheduling, advancement of women and childcare options. “Avon is honored to have been selected for this prestigious list by Working Mother magazine,” said Susan Kropf, president and chief operating officer at Avon. “For 117 years Avon has lived by a set of principles that reflect our commitment to provide our associates the opportunity to better their lives and the lives of their families within a working environment of respect and trust.

And

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Avon Seeks $62 Million Settlement In China Bribery Case

by Tina Williams • August 20, 2015 • 0 Comments

Avon Products Inc is seeking approval of a $62 million settlement of a U.S. lawsuit accusing the cosmetics company of defrauding shareholders by concealing its failure to stop workers from bribing officials in China to win business.
The proposed settlement was filed on Tuesday with the U.S. District Court in Manhattan and requires a judge’s approval.
It resolves claims that Avon, former Chief Executive Andrea Jung and former Chief Financial Strategy Officer Charles Cramb, intended to mislead shareholders from 2006 to 2011 about the company’s ability to comply with the federal Foreign Corrupt Practices Act, which prohibits bribing foreign officials.
Shareholders led by two German investment funds said Avon embraced a corporate culture that was “actively hostile” to effective oversight and concealed its dependence on corrupt activity such as “dinner and karaoke” events to boost

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Avon Products’ Rating Cut To Junk By S&P

by Tina Williams • November 4, 2014 • 0 Comments

Standard & Poor’s Ratings Services on Monday cut beauty products direct seller Avon Products Inc. corporate rating to junk, citing the company’s slower-than-expected progress to improve business and weak results, particularly in the U.S. and Brazil.

“Some of the company’s issues are deeper than we anticipated,” S&P said, cutting Avon’s corporate rating to double-B-plus, one notch below investment grade. While the company has a good geographic diversity, the rating agency said, “it will take time to re-engage its active representatives and rebuild sales growth.”

S&P, however, kept the company’s outlook at stable, signaling an expected improvement.
Founded in 1886 by David H. McConnell, a traveling book salesman, Avon became known for a growing sales force of women—the Avon Ladies—and its trademark “Avon calling!” But the New York-based company has been struggling to grow sales and attract and retain sales representatives.
Avon, which in July reported another quarter of disappointing sales and lower profits but said its U.K. market had reported the first quarter of sales growth since 2010, is the midst of a multiyear restructuring plan that the company is hoping will result in $400 million in savings.
About Avon
Everyday, Avon brings beauty to the lives of women all over the world. At Avon, beauty means finding the right lipstick

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DSA Says They Will Address Avon’s Concerns

by Tina Williams • October 3, 2014 • 0 Comments

The $32 billion direct-selling industry has gotten criticized for years by everyone from consumer activists to Wall Street tycoons. Now it’s getting heat from within.
Avon Products (AVP), one of the best known multi-level marketers (MLMs), stunned the industry earlier this month when it resigned from the Direct Selling Association, a trade association that it helped found. Avon’s stated reason for leaving the organization is that its ethics standards are not stringent enough.
The standards, which the DSA has argued are so strict that many multi-level marketers are unwilling to join, don’t strike the right balance between recruiting new salespeople and developing a viable business, according to Jennifer Vargas, a company spokeswoman.

“We think the code of ethics needs to be stronger,” Vargas said in an interview with CBS MoneyWatch.

Unlike other multi-level marketers (MLMs), Avon doesn’t require its 6 million independent sales representatives to purchase excess inventory from one another and places limits on the amount of profits they can earn from recruiting other members. Avon only allows representatives to profit from the sales of “three generations” of their organization, meaning people who are recruited by the independent businessperson.
“We do not promise commissions on infinite sales,” writes Cheryl Heinonen, the company’s chief communications officer, in

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Avon’s Profits Fall 40%

by Tina Williams • August 2, 2014 • 0 Comments

Avon Products Inc, a direct seller of beauty products, reported a 40 percent fall in quarterly profit as sales were hurt by increased competition in key markets such as Latin America and the United States.
Net income attributable to Avon tumbled to $19 million, or 4 cents per share, in the second quarter ended June 30, from $31.9 million, or 7 cents per share, a year earlier.
Revenue fell 13 percent to $2.19 billion, excluding the impact of currency fluctuations.
About Avon
Avon Products, Inc, known as Avon, is an American international manufacturer and direct selling company in beauty, household, and personal care categories. As of 2012, Avon had annual sales of $10.0 billion worldwide in 2013.
It is the fifth-largest beauty company and second largest direct selling enterprise in the world, with 6.4 million representatives. Avon Products is a multi-level marketing company. The company’s CEO is Sherilyn S. McCoy, who was appointed to that position in April 2012. The former CEO, Andrea Jung, became the executive chairman of the board.