AUGUST 13, 2024 — COMPANY DECLARES BANKRUPTCY AS BRAND NAME CAUSES CONFUSION AMONG CONSUMERS
Avon Products Inc., a U.S.-based nonoperational holding company of the Avon beauty brand, has filed for Chapter 11 bankruptcy in a Delaware court amid its mounting pile of debt linked to talc-related lawsuits that allege its products caused cancer.
API has not sold products in the U.S. since it divested its North American business in 2016 but remains the holding company of the brand’s non-U.S. operating entities.
The Avon brand in the U.S. is owned by LG Household & Health Care Ltd. is not affiliated with any other Avon entity, and is not part of the Chapter 11 proceedings.
No impact is expected on Avon’s operations outside the U.S., which are not part of the Chapter 11 proceedings. This includes the operations in the Latin America markets where the Avon brand is distributed by Natura.
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 obligations in an orderly manner."
Kristof Neirynck, CEO of Avon, said, "We remain focused on advancing our business strategy internationally, including modernizing our direct selling model and reigniting the brand to accelerate growth. Since becoming CEO earlier this year, I have been increasingly energized by our strengths and opportunities, supported by our valued Associates and nearly 2 million Representatives around the world."
OCTOBER 5, 2018 —Original post…
London, England-based Avon Products, Inc. has announced that it is continuing with its previously announced restructuring plan, consolidating its U.S. operations into its existing facilities in Suffern, New York and permanently closing the office in Rye City, New York. The closure will impact 105 employees.
Using the standardized corporate-speak template, Avon's CEO, Jan Zijderveld noted, "With Avon's international focus, simplifying our U.S. operations is a logical next step in providing fuel for growth, and a further example of our commitment to improve Avon's performance and become more fit for purpose. While decisions like these that impact our employees are never easy, we will manage the transition in a respectful and sensitive manner. I wish to thank all of our colleagues for their dedication to our growth plans to turnaround Avon."
The handwriting has been on the wall for a number of years as the company’s dated door-to-door business model was significantly impacted by product sales on websites driven by social media postings.
However, under pressure from activist investors, management has announced the will be “pivoting to a New, Open Avon.”
-- Focusing on restoring competitiveness, modernizing and digitizing the Avon brand, and capitalizing on strategic breakout opportunities by: (1) Recruiting and retaining more Representatives by increasing Her earnings and training with intent; (2) Opening up access to all consumers anywhere, anytime; (3) Capturing share in fast growth areas by expanding into those categories, markets and channels; and (4) Managing our product portfolio, winning in all price tiers, expediting innovation both in-house and with outside partners.
-- Leading a performance-based cultural transformation aimed at: (1) Identifying news ways of working by enhancing speed and agility; and (2) Injecting new capabilities within the sales organization and our digital initiatives.
-- Rebooting Avon’s Social Selling Proposition: (1) Segmenting communication and training for Her based on her intent and expectations; (2) Providing her with products and tools that transition Her to becoming a trusted Beauty Advisor to Her customers; and (3) Injecting new sales talent in key markets.
-- Modernizing Avon’s Brand and Unlocking E-Commerce for the Future: (1) Refreshing the brand identity to capitalize on Avon’s strong brand recognition and provide relevant, on-trend innovative products; and (2) Unlocking e-commerce, data and digital capabilities, as well as an open and simplified eco-system to increase access, reduce effort and provide tools to improve Her earnings.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. While many employees can read the writing on the wall; why do most assume it’s targeted at someone else? Are you now wondering, Am I Next?