Avon sells Silpada to cut costs

Beauty products company Avon is selling the jewelry business Silpada Designs back to its co-founders and their families for $85 million, well below the $650 million it paid three years ago.

Avon has been struggling at home and abroad as weak sales have hurt its profitability. CEO Sheri McCoy is pursuing a turnaround plan to cut costs, leave unprofitable markets and streamline operations.

The families of Silpada co-founders Jerry and Bonnie Kelly and Tom and Teresa Walsh, through their company Rhinestone Holdings Inc., were the highest bidders.

Associated Press