Avon was going to sell North American business Fund Cerberus

Moscow. December 4. American manufacturer and seller of cosmetics Avon Products Inc is in talks to sell North American business to investment Fund Cerberus Capital Management LP, according to The Wall Street Journal, citing an informed source.

According to them, negotiations are at an advanced stage.

If the deal goes through, Cerberus will become the largest shareholder in Avon and can get a seat on the Board of Directors, the newspaper notes.

The terms of a potential purchase is not yet clear, and the sources warned that the deal may not take place. However, if the companies agree, it will happen before the end of this year.

In recent years, selling Avon, founded in 1886, is declining, partly because its model of distribution, based on personal sales through a network of representatives, numbering about 6 million people.

In 2014, Avon’s net loss amounted to about $400 million on revenue of $8.9 billion In January-September of the current year sales fell 19% to $5.3 billion, however excluding the changes in foreign exchange rates the rate has not changed. At the end of September the amount of the company’s debt exceeded $2 billion.

Revenue of the North American Amway business in January-September decreased by 17% to $731 million, the loss amounted to $47 million.