Avon Cosmetics Departs Venezuela, Transfers Assets to Local Company

The global cosmetics company is quitting the South American country, leaving its assets and workforce in the hands of a local firm

Eddie Seal/Bloomberg
June 29, 2022 | 09:20 AM

Caracas — Avon Cosmetics has announced its withdrawal from Venezuela, bringing an end to an almost 70-year history of producing and marketing its products in the country.

Avon Cosmetics de Venezuela CA announced its withdrawal from the country in an Instagram post, and the transfer of its assets to an unnamed business group of Venezuelan capital, which will operate under a different corporate name.

“We thank the employees who have been part of the history of the brand (...) we wish the greatest success to the new shareholder who begins their management,” the text reads, but which does not offer further details about the new direction of the company in the country.

The change in the company’s corporate name means that the new owners of the company will not be able to use the Avon brand name.

VIEW +Revlon Files for Bankruptcy, Says Demand for Its Products Remains Strong

However, the reactivation of operations will take place immediately, according to unofficial sources, with the launch of a local brand, and the company’s assets and payroll will be under the full control of the new shareholders.

Avon Cosmetics, which was acquired by Brazilian company Natura in May 2019, has not been receiving any new raw materials with which to manufacture its products in Venezuela during the last few months.

Since May 2021, the company had not published any information through its communication channels, with its local webpage undergoing maintenance, according to an announcement on the homepage.

VIEW +Beauty Giant Natura Defies Skeptics in Surprise Margin Gain