Natura &Co has announced it will resume exploring strategic options for its Avon business outside of Latin America, as per a securities filing released Wednesday. The company had previously paused these discussions in August following Avon Products Inc.’s Chapter 11 bankruptcy filing in Delaware, a move prompted by the company’s escalating debt linked to lawsuits over talc-related cancer allegations.
In the latest filing, Natura confirmed that the U.S. court overseeing Avon’s bankruptcy proceedings had approved a settlement agreement between Natura and Avon’s creditors, as well as the sale of Avon’s operations via a credit bid worth $125 million. Natura indicated that it is now considering a variety of potential outcomes for Avon’s international operations, including a separation, sale, or partnership.
This marks a continuation of Natura’s broader strategy to simplify its corporate structure, which has included the divestments of Aesop and The Body Shop in recent years. In February, Natura had also floated the possibility of spinning off Avon’s international business as a separate publicly traded company in a bid to unlock more shareholder value.
The U.S. division of Avon, owned by LG Household & Health Care Ltd., is not part of the discussions and remains unaffected by the bankruptcy proceedings, as it is an entirely separate entity. Meanwhile, Natura’s ongoing restructuring efforts align with its goal of focusing on its core operations while shedding non-essential assets.
