Revolution Beauty slams ‘self-serving’ Boohoo coup
Revolution Beauty board denounces ‘selfish’ and ‘hostile’ Boohoo coup attempt as AGM postponed
- Boohoo wants to fire Revolution Beauty’s CEO, chairman and CFO
- It wants to replace it with its own people, including the former New Look chair
Revolution Beauty is about to postpone its annual general meeting when the troubled retailer tries to fend off an attempted coup by top shareholder Boohoo.
The troubled cosmetics retailer condemned Boohoo’s attempt to remove CEO Bob Holt and senior colleagues as “value-destroying, opportunistic and selfish,” adding that it is not in the best interest of shareholders.
Boohoo plans to vote against Revolution Beauty’s renomination of Holt, chairman Derek Zissman and chief financial officer Elizabeth Lake next Tuesday at the company’s AMG. It owns about 26.6 percent of Revolution Beauty stock.
Ready for war: Revolution Beauty prepares to clash with top shareholder Boohoo
The online fast fashion retailer is calling for a separate general meeting to oust the three bosses and wants to replace them with former New Look chairman Alistair McGeorge, as interim executive chairman, and former finance boss Neil Catto, as CFO.
Revolution Beauty, whose shares are still unable to trade on AIM in the wake of an accounting scandal, said it will propose postponing the June 27 AGM because “shareholders should be given adequate time to consider whether they believe Boohoo’s proposed seizure of controlling interest …is a viable strategy’.
Trading in the makeup company’s shares has been suspended since September after accountants refused to sign off the books from the previous fiscal year.
Co-founder and CEO Adam Minto, who still holds a 15.8 percent stake in the company, stepped down from Revolution Beauty in November after the start of an investigation into the company’s finances.
Revolution Beauty has prepared shareholders for possible legal action against Minto.
But Revolution Beauty urged shareholders not to support Boohoo’s coup, arguing that the “current directors and management team” have navigated the group “out of the chaos arising from its extensive historical management and governance issues.” .
It pointed to improved trading fortunes, with expectations of high-single-digit sales and profit growth in the “high-single-digit millions” this financial year.
The group said: “Boohoo’s actions appear to be a cynical attempt to seize control of the company without financial outlay or any compensation to Revolution Beauty shareholders, and it appears to be a reckless strategy unless Boohoo is sure of the support from other shareholders of the company. .
Current directors believe Boohoo’s actions pose a significant risk to the rapid recovery of the company’s stock trading and stakeholder relations, and appear calculated to destabilize rather than support the company.
“Boohoo is attempting a coup of directors and management without making a blanket offer, or paying a single penny to independent shareholders of the company, and without reasonable justification for the large-scale and dramatic changes proposed to the executive management team.”
Mr. Zissman, the company’s chairman, added that Boohoo’s actions are “a clear attempt to destabilize the company at a critical time in its recovery.”
He said, “This will only serve to further delay the lifting of the suspension of trading in Revolution Beauty’s stock. I urge shareholders to vote in favor of reappointing the current directors to the Board of Directors and to allow the management team to get the job done.”