Avon Unloads Silpada Jewelry

by Christopher Freeburn | July 3, 2013 10:26 am

avon-makeup-630[1]Avon (AVP[2]) is returning something it bought. The company will sell its jewelry business back to it original owners[3].

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[4] under new CEO Sheri McCoy.

In April, Avon announced that it would cut its worldwide workforce by 400 employees and exit the Irish market[5].

Shares of Avon fell almost 2% in Wednesday morning trading.

  1. [Image]: http://investorplace.com/wp-content/uploads/2012/06/avon-makeup-630.jpg
  2. AVP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AVP
  3. back to it original owners: http://hosted.ap.org/dynamic/stories/U/US_AVON_PRODUCTS_SILPADA?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-07-03-07-22-49
  4. attempting to restructure and streamline its operations: http://investorplace.com/2012/04/sheri-mccoy-takes-charge-at-avon/
  5. and exit the Irish market: http://investorplace.com/2013/04/avon-cuts-400-jobs-leaves-ireland/

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