Beleaguered direct sales giant Avon is said to be in talks with several private equity firms about raising cash via the sale of a stake in the company, according to a report published in the Wall Street Journal.

Cerberus Capital Management and Platinum Equity are reportedly involved in the auction process, and bids are due to be entered this week. The size of the stake available in the US$2 billion company has not been disclosed and Avon is also said to be considering other options.

Avon has been struggling to reverse a drop in sales for the past four years as weak demand in Brazil and a decline in the number of representatives employed in the US has negatively affected performance. Avon has recently pledged to use only sustainably sourced palm oil in a bid to appeal to environmentally conscious consumers, as well as sold its Liz Earle skincare brand to Walgreen Boots Alliance to raise funds.

The news follows a bogus takeover bid for the direct sales giant in May, conducted by a Bulgarian.