Revolution Beauty shares soar on recovery, but Boohoo spits deeper after chaotic annual general meeting
- Revolution Beauty shares are up 55% as they trade again today on AIM
- Boohoo has called for another general meeting to remove executives
- REVB claims it could lead to another delay in the publication of its annual results
Revolution Beauty shares traded again on the London Stock Exchange on Wednesday, with the embattled retailer up more than 55 percent during the open.
But Revolution Beauty’s public feud with Boohoo, its largest shareholder, has deepened after yesterday’s chaotic annual general meeting, where the impeachment of top executives was immediately followed by their reappointment.
Boohoo, which has a stake of about 26.6 percent, said on Wednesday it had “serious concerns” about the behavior of Revolution Beauty’s board of directors at the shareholder meeting, describing its actions as “self-interest and not in the best interest of the public.” the shareholders’.
It has called for another general meeting to remove CEO Bob Holt, chief financial officer Elizabeth Lake and chairman Derek Zissman again.
Revolution Beauty shares are up 55% as they started trading again on AIM today
The comments follow yesterday’s AGM, where Zissman tried, but failed, to postpone the meeting amid a proposed coup by Boohoo.
Zissman, Holt and Lake were then removed from the board.
That left only one director, Jeremy Schwartz, who appointed a new set of directors, including the three who had just been impeached.
At least for now, Zissman, Holt and Lacremain in their old position.
In a stock market statement today, Revolution Beauty alleged that “Boohoo is attempting a board and management coup without making a blanket offer or paying a single penny to independent shareholders.”
“Boohoo’s approach to Revolution Beauty is nothing short of value-destroying, opportunistic and selfish,” it added.
It also told shareholders that Boohoo’s actions could cause another delay in the company’s full-year results release, due at the end of August, which could lead to another suspension of Revolution Beauty shares.
Revolution Beauty Stocks jumped 55 percent to 29.50p in early trading on Wednesday. But even after today’s bounce, they remain well below their July 2021 IPO price of 160p.
The shares had been suspended since September 1 after accountants refused to sign off the books for the fiscal year.
Meanwhile, Boohoo said it “fails to see how such a board can claim to act in the best interests of shareholders, and is instead selfish, as evidenced by its actions over the past 24 hours.”
“This is likely to result in significant compensation and share awards for members of a self-elected board of directors upon the lifting of the suspension of trading of its shares,” it added.
“Notably, at no point did the remuneration committee seek prior consultation or shareholder approval with respect to these awards, again in violation of corporate governance best practice.”