Avon Products, formerly known as a powerhouse in the direct sales industry with an estimated value of $21 billion, has announced it will be seeking Chapter 11 bankruptcy protection. The decision comes as the company faces numerous lawsuits linking talcum powder found in their products to cancer. Avon Products, which ceased operations in the US in 2016 and continues to operate internationally, has been accused of selling talc-based products contaminated with asbestos - another known carcinogen.

The company's press release states that this bankruptcy filing aims to address both their debt and outstanding talc liabilities. John Dubel, chair of Avon Products, expressed that this move will "maximize the value of our assets and enable us to address our obligations in an orderly manner." Dubel emphasized that Avon remains committed to advancing their business strategy internationally and modernizing their direct selling model.

The beauty brand's use of talc, a mineral linked to cancer, has been under scrutiny as hundreds of lawsuits have been filed against Avon in recent years. These lawsuits allege that Avon's talc-based products were contaminated with asbestos, posing significant health risks to consumers.

In December 2022, an Arizona woman was awarded over $50 million by a Los Angeles jury after she claimed her cancer diagnosis was a result of using Avon's cosmetic products containing asbestos-tainted talc. More recently, a Chicago-area man who worked at an Avon manufacturing plant in Illinois was awarded $24.4 million after being diagnosed with mesothelioma, a type of cancer associated with asbestos exposure.

These verdicts follow Johnson & Johnson's $6.5 billion settlement earlier this year over claims that their talc-based baby powder contributed to ovarian cancer diagnoses. The $350 billion New Jersey-based pharmaceutical giant also considered filing for bankruptcy due to the multitude of lawsuits linking their products to various illnesses.

Both Avon and Johnson & Johnson have denied any link between their talc products and the development of cancer. Avon maintains that they only use cosmetic grade talc that has been tested and confirmed to be asbestos-free.

As Avon moves forward with their bankruptcy proceedings, their focus remains on international operations and revitalizing their brand to drive growth. The future of this iconic direct sales company will be closely watched as they navigate through these legal challenges and address their outstanding liabilities.