Brazilian cosmetics giant Natura&Co (NTCO3.SA) announced on Wednesday that it will resume evaluating its options for the future of its Avon business outside of Latin America. The decision follows the approval of a key agreement between Natura and Avon Products’ creditors by a U.S. court overseeing the company’s Chapter 11 bankruptcy proceedings.
Earlier this year, Natura had paused plans regarding the Avon unit when Avon Products, a non-operating U.S.-based holding acquired by Natura in 2020, filed for bankruptcy protection. However, with the recent court approval, Natura is now in a position to move forward with its strategic review of the Avon business in markets beyond Latin America.
Natura revealed that it is considering a range of options for Avon’s international operations, including potential partnerships, a spin-off, or even a sale. The company had first hinted at these possibilities in February, noting that a new, independently listed entity could be created to handle Avon’s non-Latin American businesses.
However, it is important to note that Avon’s U.S. business, which was not part of the Natura acquisition, will not be affected by this restructuring process. The approval of the creditors agreement marks a crucial step in Natura&Co’s ongoing efforts to streamline its operations and optimize its portfolio of global beauty brands.
With a clear path forward, Natura&Co will now focus on executing its strategic review, which aims to create long-term value for its stakeholders while maintaining its commitment to sustainable business practices and growth.
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