Natura&Co Reassesses Avon Business Plans

SAO PAULO (Reuters) – Brazilian cosmetics maker Natura&Co will reevaluate its Avon business plans outside of Latin America, following a recent securities filing.

Natura paused this assessment in August when its Avon Products unit, acquired in 2020, filed for Chapter 11 bankruptcy protection.

On Wednesday, Natura announced that a U.S. court overseeing the bankruptcy confirmed a previously disclosed agreement with Avon Products' creditors. This also includes a deal concerning Avon's operations outside the U.S., enabling Natura to resume its evaluation of the unit.

Natura's potential options for the Avon business outside of Latin America may include partnerships, a spin-off, or a sale, which was first hinted at in February with the possibility of creating a new listed firm for the division.

It should be noted that Avon's U.S. operations, which are not under Natura's ownership, will not be affected by these plans.