41-year-old cosmetics company files for Chapter 11 bankruptcy

Fierce contention is 1 of the biggest challenges for the cosmetics sector, which consists of 5,085 businesses successful the cosmetics and quality products manufacturing manufacture that generated astir $39.3 cardinal successful gross successful 2025, according to probe firm IBISWorld.

Cosmetics businesses besides look economical issues that each retailers woody with, including rising costs of labour and products driven by inflation, rising involvement rates connected their debts, and accrued tariff costs, which tin pb to out-of-court restructurings oregon bankruptcy filings.

For immoderate cosmetics brands, similar iconic retailer Avon Products, litigation related to asbestos vulnerability owed to talc products buried the institution successful indebtedness and forced it to record for bankruptcy successful August 2024.

And now, akin litigation has forced different cosmetics institution to record for bankruptcy protection.

Miyoshi America files for bankruptcy

Miyoshi America Inc., a person successful surface-treated pigments and powders for large cosmetics brands, filed a prepackaged Chapter 11 program of reorganization seeking to resoluteness alleged talc- and asbestos-related liabilities asserted successful lawsuits against the institution and proceed operating successful a business-as-usual manner.

Miyoshi filed its petition successful the U.S. Bankruptcy Court for the Southern District of Texas connected April 27, listing $10 cardinal to $50 cardinal successful assets and liabilities, which includes astir $30.7 cardinal successful assets.

The debtor owes $15 cardinal successful funded indebtedness to its genitor company, Miyoshi Kasei Inc., according to tribunal papers.

Miyoshi seeks DIP financing

Miyoshi America volition question $20 cardinal successful debtor-in-possession financing from its genitor company, consisting of $5 cardinal successful caller wealth and a roll-up of its $15 cardinal successful prepetition debt.

Under the program of reorganization that needs tribunal approval, the Dayville, Conn.-based debtor would make a $20 cardinal spot to wage claims related to litigation, according to a declaration by Miyoshi Vice President Edward Houlihan.

Debtor creates $20 cardinal litigation spot

Miyoshi would make a 524 (g) trust, funded by a $19 cardinal currency publication by the debtor and a $1 cardinal promissory note.

"I judge that the filing of the Chapter 11 lawsuit and the instauration of the spot nether sections 524 (G) and 105 (a) of the bankruptcy codification for the payment of holders of talc idiosyncratic wounded claims represents the astir businesslike and expeditious means for Miyoshi to reorganize and proceed operating portion besides providing just and equitable attraction to holders of existent and aboriginal talc idiosyncratic wounded claims," Houlihan wrote.