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:

  • Cos Bar: Turning 40 and Hitting Fast Forward

    Cos Bar: Turning 40 and Hitting Fast Forward

    Christine Esposito, Associate Editor||November 21, 2016
    With a recent investor infusion, a new CEO and rebranding effort underway, this luxury beauty retailer has big plans.

  • Organic Matter

    Organic Matter

    Christine Esposito, Associate Editor||November 14, 2016
    FTC and USDA hold a public roundtable to discuss consumers’ perception of organic claims.

  • Get Ready, ‘Cause Here it Comes…

    Get Ready, ‘Cause Here it Comes…

    Christine Esposito, Associate Editor||November 1, 2016
    Skinphonic is a new brand created with a team of beauty experts and fronted by singer Smokey Robinson.

  • The World Comes to Orlando

    The World Comes to Orlando

    Tom Branna , Editorial Director||December 1, 2016
    More than 1,600 chemists traveled to Florida for the IFSCC Congress

  • Perform or Perish

    Perform or Perish

    Christine Esposito, Associate Editor||December 1, 2016
    Success in today’s skin care sector begins with active ingredients, formulated in products that address modern-day issues.

  • New and Noteworthy:  Fine Fragrance Roundup  for Fall 2016

    New and Noteworthy: Fine Fragrance Roundup for Fall 2016

    Melissa Meisel, Associate Editor||November 2, 2016
    Check out the latest launches in fragrance this season.