CEO of Avon Products, Inc (NYSE:AVP) CEO may step down after investors pressure
According to publications on Wednesday, cosmetics giant Avon Products, Inc.(NYSE:AVP)’s Chief Executive Sheri McCoy is likely to step down.
The reports said that people familiar with the matter, have informed that the 58-year-old chief executive may be retiring.
In the recent times Activist investor Barington Capital has been putting immense pressure on the cosmetics firm to look out for a new chief executive, highlighting Avon Products, Inc.(NYSE:AVP) shares have struggled under McCoy.
Barington Capital noted that Avon’s stock has plunged close to 84 percent since McCoy took control of the company as CEO in April 2012 and, in one of her very initial moves, discarded a $10.7 billion takeover bid from Coty Inc (COTY.N).
Meanwhile sources said McCoy is close to a decision to retire, and the terms of her leaving are still being worked out but no final decision has been made, the report said.
RYE, NY-based Avon Products pioneered door-to-door selling but has been under immense pressure with changing consumer tastes, raising issues that its more than 130-year-old sale model is out-of-date and unable to draw shoppers who want on the spot satisfaction.
In an attempt to boost the business in 2015, Avon sold more than 80% of its North American business to New York-based hedge fund Cerberus Capital Management.
Furthermore in the start of 2016, the company revealed a three-year turnaround plan to slash $350 million in costs, invest in technology and tap social media.
Despite all that, Avon failed to produce any positive result in five of the last eight quarters.
Avon Products, Inc.(NYSE:AVP) was not instantly available for remarks. Avon’s stock was up 4.6% at $3.66 on Wednesday close.