Former Pfizer Talc Supplier Files Bankruptcy

Former Pfizer Talc Supplier Files Bankruptcy

Introduction

Barrett Minerals Inc. (BMI), a former talc supplier to the cosmetics industry, has entered bankruptcy proceedings.

The company, previously owned by Pfizer until its 1992 sale, is currently contending with approximately 550 personal injury lawsuits linked to talc usage, a notable increase from just 14 cases in 2018, underscoring the growing awareness of talc-related litigation.

Traditionally, Barrett relied on Pfizer to assist in resolving these claims related to talc exposure prior to 1992. However, the company has incurred significant litigation costs, mainly because Pfizer has resisted providing comprehensive indemnification for talc-related claims. Barrett Minerals Inc. also maintains that these claims lack validity.

The Chairman and CEO of Barrett reaffirmed their stance, stating, "We continue to believe the lawsuits against BMI lack merit, and we stand by the safety of BMI's talc products, which have consistently undergone rigorous testing."

While Barrett ceased selling talc for cosmetic products in 2014, it still supplies talc for other consumer goods such as food and pharmaceuticals. Barrett's talc was formerly used in well-known products like Gold Bond body powder. The company has chosen not to comment further on this issue.

However, Barrett is not the only cosmetics-related company that has recently sought bankruptcy protection. Last month, SmileDirectClub, which has been providing direct-to-consumer teeth-straightening products for almost a decade and is known for its affordability, also filed for Chapter 11 bankruptcy.

Despite experiencing weak sales and losses over the years, SmileDirectClub is expected to continue regular operations during the bankruptcy process, including maintaining its 105 physical locations.

Additionally, the retail industry has witnessed several major players grappling with bankruptcy this year.