10 Brands to Disappear in 2013

Avon

It would be difficult to find another American company as bad off as Avon Products. Avon’s long time CEO, Andrea Jung, was thrown out late last year after nearly reducing the company to rubble. The new CEO, Sherilyn S. McCoy, formerly of Johnson & Johnson, joined the company in April. Avon’s main problem is that the beauty market is highly competitive, yet management has not concentrated on its core business. Avon announced ruinous earnings in the previous quarter, and it forecast that things will get poorer. Avon, however, is lucky that it may have a suitor. In May, perfume company Coty offered $24.75 a share for Avon, nearly 20 percent above Avon’s stock price at the time. Coty had the financial backing of others like Warren Buffett. Avon dragged its feet and Coty withdrew its offer. But Coty, another consumer products firm or a private equity house will be back. Since the Coty offer was withdrawn, Avon’s shares have dropped below $16. That price is down from $43 four years ago. The market has no confidence in Avon, but with its brand and revenue, it is an ideal takeover target.