Avon Products, Inc. has initiated voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware to address its debt and legacy talc liabilities.

API has not sold products in the US since it divested its North America business in 2016 but remains the holding company of the brand’s non-US operating entities.

Avon’s operating international businesses – which continue to advance on strategic initiatives – are not part of the Chapter 11 proceedings.

“We remain focused on advancing our business strategy internationally, including modernizing our direct selling model and reigniting the brand to accelerate growth,” said Kristof Neirynck, CEO of Avon. “Since becoming CEO earlier this year, I am increasingly energized by our strengths and opportunities, supported by our valued associates and nearly two million representatives around the world.”

Brazil-based Natura &Co, which acquired Avon in 2020, has entered into an agreement to purchase the equity interests in Avon’s non-US operations for $125 million in the form of a credit bid, subject to a court-supervised auction process.

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.

API Chairperson John Dubel said the proposed sale of Avon’s non-US operations will “maximize the value” of its assets and enable the company to address its obligations in an orderly manner.

On Wednesday, The Avon Company assured its representatives and customers that its operations, product offerings and business strategies remain in place.

In 2016, The Avon Company separated from worldwide Avon Products Inc., and now The Avon Company operates independently and markets products in the US, Canada, and Puerto Rico. Avon Products Inc. markets Avon products worldwide. In 2019, LG H&H, a leading K-beauty and personal care company in Korea, acquired Avon’s North America business and has operated since then.

In light of recent news, there is no impact to the Avon US, Canada and Puerto Rico business.

“We understand there is confusion about our business structure and want to reassure our Representatives and customers that The Avon Company is operating as usual,” said Sun Moon, CEO of The Avon Company. “The Avon Company has charted its own course under our parent company LG H&H and we remain committed to providing outstanding products and services while pursuing growth and innovation in the US, Canada and Puerto Rico.”