Boohoo reveals plans for boardroom coup at troubled Revolution Beauty

Boohoo, which is Revolution Beauty’s biggest shareholder, wants to oust and replace the firm’s three top bosses.

Holly Williams
Monday 19 June 2023 14:04 BST
Revolution Beauty enjoyed a boost in sales. (Revolution Beauty / PA)
Revolution Beauty enjoyed a boost in sales. (Revolution Beauty / PA)

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Revolution Beauty’s biggest shareholder, online fashion firm Boohoo, has called for the removal of top bosses at the troubled make-up retailer.

Boohoo – which owns a stake of around 26.6% in Revolution Beauty – said 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.

It has also requested a separate general meeting to oust the three bosses and replace them with Boohoo non-executive director and former New Look chairman Alistair McGeorge as interim executive chairman and ex-Boohoo finance boss Neil Catto as chief financial officer.

Boohoo said the overhauled board should then “undertake a rigorous process” to appoint additional independent directors.

Boohoo said: “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.”

Problem-hit Revolution Beauty 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 heavily delayed interim results 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% to £75.3 million, with digital wholesale revenue falling 22%, while its own web sales dropped 8%.

In the UK, revenue from stores grew 21% compared with the same period a year earlier as customers returned to bricks-and-mortar shops, the company said, as it signed a new deal with Boots and saw strong sales in Superdrug.

Boohoo first invested in Revolution Beauty in August 2022 before upping its stake in November last year.

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