PARIS — Avon France has asked to enter receivership, according to an industry source.
This story first appeared in the January 29, 2014 issue of WWD. Subscribe Today.
The source said the money-losing subsidiary of Avon Products Inc. put the request in Tuesday with the commercial court of Bobigny, France.
The management of Avon France had no comment on the subject, a company spokesman said.
For more than 10 years the firm has been losing money in France, where it has been present since 1964. In 2012, it registered losses of 3.2 million euros, or $4.1 million at average exchange, on sales of 20.8 million euros, or $26.8 million, for instance.
That year it’s said to have had a 0.2 percent share of the country’s cosmetics market.
Avon France currently has 127 salaried employees and a few thousand active independent representatives.
The French court is expected to hand down its decision on Thursday.
The news of Avon France’s request comes on the heels of Avon Products Inc. saying in December that it had taken additional actions relating to a previously disclosed $400 million cost-savings initiative that included global head-count reductions of 650 employees.