Revolution Beauty’s biggest shareholder, the Manchester-based online fashion giant Boohoo, has called for the removal of top bosses at the troubled make-up retailer.
Boohoo – which owns a stake of around 26.6 per cent in Essex-based Revolution Beauty since it upped its stake last November – said in a statement to the stock exchange that it plans to vote against the reappointment of Revolution Beauty’s chief executive Bob Holt, chairman Derek Zissman and chief financial officer Elizabeth Lake at the firm’s upcoming annual general meeting for shareholders on June 27.
Boohoo has also revealed plans to appoint two of its non-executive directors, Alistair McGeorge and Neil Catto, to Revolution Beauty’s board to become its new executive chairman and CFO respectively.
Embattled Revolution has seen its shares suspended since September last year after auditors refused to sign off its accounts for the last financial year, which sparked an investigation into its finances.
In the delayed interim results, finally published earlier this month, the business said losses narrowed to £13.3 million in the six months to the end of August 2022, from £28.8 million a year earlier.
Revenue fell 4.2 per cent to £75.3 million, with digital wholesale revenue falling 22 per cent, while its own web sales dropped 8 per cent.
UK revenue from stores grew 21 per cent compared with the same period a year earlier as customers returned to bricks-and-mortar shops and the company signed a new deal with Boots alongside strong sales in Superdrug
Boohoo’s statement in full said: “Boohoo, the beneficial owner of approximately 26.6% of the issued share capital of Revolution Beauty Group plc announces that it has today notified the board of Revolution Beauty of its intention to vote against the reappointment of Bob Holt, Derek Zissman, and Elizabeth Lake at the upcoming AGM of Revolution Beauty which has been convened for 27 June 2023.
“Boohoo has, in addition, requisitioned a general meeting of Revolution Beauty pursuant to Section 303 of the Companies Act 2006, at which ordinary resolutions will be proposed to remove Bob Holt, Elizabeth Lake and Derek Zissman as directors of Revolution Beauty, and to appoint Alistair McGeorge and Neil Catto as directors.
“If appointed, it is expected that Alistair will serve as interim executive chairman and Neil as CFO of Revolution Beauty and that the reconstituted board will then undertake a rigorous process to appoint additional independent directors.
“In light of this, boohoo has also requested that the existing board of Revolution Beauty does not proceed to appoint Rachel Maguire and Matthew Eatough as directors. As Revolution Beauty’s biggest shareholder, Boohoo is grateful to Bob, Derek and Elizabeth for stabilising the business.
“However, as Revolution Beauty transitions to its next phase, where the focus must switch to growth, boohoo believes a senior leadership team with the right retail, e-commerce and consumer brands experience is required to deliver shareholder value.”