The beauty business, known for its door-to-door sales representatives, is a holding company that sold its North American business in 2016.
But The Wall Street Journal reports Avon Products is still on the hook for debt and legacy talc liabilities.
According to WSJ, the company has spent more than $225 million defending itself and making settlement payments. Avon's debt also includes more than $1 billion owed to lenders and bondholders.
One of its lenders, Brazil-based personal care brand Natura, has offered financing and to serve as a lead bidder as Avon looks to sell assets during bankruptcy.
CNN contributed to this report.