Avon owner files for bankruptcy following talc cancer claims

Avon has filed for bankruptcy in the wake of more than 100 claims alleging talcum powder in its products causes cancer. Avon Products, the cosmetics company’s parent group, said it recently filed for Chapter 11 bankruptcy protection in the U.S. to stave off debt pressures and the impact of looming lawsuits. Lawyers argue there is a link between talc and cancer after claiming Avon manufactured products that were contaminated with asbestos.  Avon has repeatedly denied the claims, saying that it “only uses cosmetic grade talc which has been tested to confirm that it does not contain asbestos.” Brazil-based personal care brand Natura, which acquired Avon in 2020 and which is also a lender to the business, has agreed to provide up to $43m in proposed financing during the bankruptcy. The Wall Street Journal notes that Avon’s international business, which includes Europe, the Middle East and Africa, is not included in the bankruptcy and is operating as usual, and Avon Co., the U.S. brand currently owned by LG Household & Health Care, is not part of the Chapter 11 case either.