Avon, a major beauty company, declares bankruptcy.

The owner of the beloved Avon cosmetics brand, famous for its friendly door-to-door saleswomen, has recently filed for bankruptcy following legal action alleging that talc in their products may have caused cancer. According to reports from Bloomberg, Avon Products Inc. made the decision to file their claim in the United States this week. As stated in court documents, the multinational beauty company is facing a total of 386 individual cases related to talc usage.

In an effort to address these cases and provide compensation to those affected, Avon Products has already paid out a staggering $US225 million in personal injury lawsuits and settlements. However, this has put a significant strain on the company's finances and they are now facing the harsh reality that they do not have enough resources to continue litigating and settling these cases. As their chief restructuring officer emphasized in court filings, Avon Products does not have the necessary liquidity to handle this ongoing legal battle. They fear that without a permanent solution, the number of lawsuits will only continue to grow.

Unfortunately, Avon Products is not the first company to face bankruptcy due to lawsuits surrounding talc products. Other major players in the industry, such as pharmaceutical and medical technologies giant Johnson & Johnson, have also attempted to settle with plaintiffs using bankruptcy but have yet to find success. This trend highlights the serious impact that these lawsuits can have on companies, both financially and in terms of reputation.

In 2018, after more than 50 years of operating in the country, Avon made the difficult decision to close its business in Australia. Since the early 1960s, their friendly and dedicated door-to-door sales representatives, affectionately known as "Avon ladies," have been delivering brochures advertising their wide range of beauty products, jewellery, and accessories to homes across the country. It is a sad end to a brand that was founded in 1886 by a door-to-door salesman in New York.

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