by Christopher Freeburn | July 3, 2013 10:26 am
Avon (AVP) is returning something it bought. The company will sell its jewelry business back to it original owners.
The co-founders of Silpada Designs, which sells sterling silver jewelry through gatherings in people’s homes, outbid rivals in an auction conducted by Avon. They will pay $85 million to get their business back. But that’s a fraction of the $650 million Avon paid for the company in 2010, the Associated Press notes.
Avon could receive an additional $15 million if Silpada meets certain financial targets by 2015. The beauty products company will take an $80 million pre-tax charge during the second-quarter relating to the sale.
Faced with declining sales, Avon is attempting to restructure and streamline its operations under new CEO Sheri McCoy.
In April, Avon announced that it would cut its worldwide workforce by 400 employees and exit the Irish market.
Shares of Avon fell almost 2% in Wednesday morning trading.
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