Reports: Beauty brand Avon discussing sale of North American business

Beauty brand Avon Products is reportedly in talks to sell its North American business to a private equity firm as it struggles with steep losses and years of falling sales.

Avon is discussing a sale to Cerberus Capital Management, according to reports from The Wall Street Journal and Reuters. The Journal said that as part of the potential deal, Cerberus would become Avon's largest shareholder with a minority investment in the company.

Avon shares jumped more than 11% in morning trading Friday.

The news, which was first reported Thursday, comes as an activist investor group with a more than 3% stake in the company is attempting to turn the business around. Barington Capital Group sent a public letter to Avon's chairman Thursday proposing a restructuring plan that would include new leadership for the company.

Barington also said that it has "been concerned by press reports that the board may be considering various transactions that could further destroy shareholder value, including the sale of the Company’s North America business."

Avon has been faltering for at least a decade as it's dealt with increased competition in the beauty space and internal pressures including expensive restructuring and a bribery investigation, the Journal reports. Three years ago, it turned down an $11 billion takeover offer from cosmetics company Coty. As of September, Avon had more than $2 billion in debt, according to the Journal.