The owner of the iconic Avon cosmetics brand, known for its door-to-door saleswomen, has filed for bankruptcy after being hit by lawsuits alleging talc in its products caused cancer.
Avon Products Inc. filed its claim in the United States this week, reports the Bloomberg agency.
The multinational beauty company is seeking to address 386 individual talc-related cases, according to court documents.
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Defending personal injury lawsuits and settlement payments have to date cost the company $US225 million ($338 million) and it lacks ”sufficient liquidity to litigate and/or settle” the cases, its chief restructuring officer said in court filings.
The company expects the number of lawsuits to increase without a permanent solution.
Avon Products is the latest company to seek bankruptcy in order to deal with lawsuits arising from the sale of talc products.
Pharmaceutical and medical technologies giant Johnson & Johnson has attempted to settle with plaintiffs using bankruptcy multiple times and is yet to succeed.
In 2018, Avon closed its business in Australia after more than 50 years operating in the country.
From the early 1960s, door-to-door sales representatives, affectionately known as “Avon ladies” delivered brochures advertising beauty products, jewellery and accessories to homes across the country.
Avon was founded by a door-to-door salesman in 1886 in New York.
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