PARIS — Avon France was placed into receivership Thursday by a French commercial court, according to an industry source, who said the company’s period of observation will last six months. The money-losing subsidiary of Avon Products Inc. put the request in Tuesday with the court in Bobigny, France.
This story first appeared in the January 31, 2014 issue of WWD. Subscribe Today.
The management of Avon France did not wish to make any comment, 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 news of Avon France’s receivership comes fast 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.