Breaking News

From Bad to Worse at Avon

October 31, 2013

DOJ gets ready to unload a big fine.

It was all tricks and no treats for Avon on this Halloween. Company share prices plunged down 22% (the worst decline in 14 years), after the direct seller of beauty products said the Securities and Exchange Commission and the U.S. Department of Justice may propose much bigger than expected settlement terms over investigation into its alleged bribery practice in China and other countries.


The federal agencies in June rejected Avon's proposed $12 million settlement offer. Avon said it was contacted by SEC staff in September, when SEC's suggested terms of proposed monetary penalties that were much bigger than Avon's earlier offer. The company said if the DOJ were to propose similar terms and the company were to enter into settlement, its "earnings, cash flows, liquidity, financial condition and ongoing business would be materially adversely impacted." The disclosure was made as Avon swung to a third-quarter loss following about a 20% sales drop each in North America and Asia.


"There's no shortage of challenges for us," CEO Sheri McCoy said on a call

Related End-User Markets:

blog comments powered by Disqus
  • Problems for Preservatives

    Problems for Preservatives

    June 20, 2016
    David Steinberg details the issues surrounding this critical ingredient category.

  • Voyage to Better Skin

    Voyage to Better Skin

    June 13, 2016
    Skin Inc. rolls out new light-based device to US market.

  • Patent Update

    Patent Update

    June 9, 2016
    Avon’s use of melicope extract, skin care with SPF and chicory root, microdermabrasion cream and more in recent patents.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.