Cosmetics giant Avon files for bankruptcy

United States-based Avon Products has filed for bankruptcy protection following a series of lawsuits alleging that its talcum powder products cause cancer. The company stated that with its filing under Chapter 11 of the Bankruptcy Code, it aims to manage its debts and legal liabilities in an orderly manner.

According to the report in GZT, the brand was ordered to pay more than 50 million dollars in compensation in December 2022 to an American woman who was diagnosed with cancer after using Avon products. Similarly, it was decided that compensation should be paid to dozens of other individuals who were diagnosed with cancer.

However, it was announced that despite the bankruptcy proceedings in the US, the company will continue its operations outside of America.

The company president says that the bankruptcy will ensure that obligations are met in an orderly manner.

News Source: 12punto