Boohoo amps up stake in troubled Revolution Beauty to 26 per cent
Fast fashion retailer Boohoo has upped its stake in Revolution Beauty, as the troubled cosmetics firm announced a new chief.
The online retailer said it had upped its strategic investment in the lipstick seller to 26.47 per cent of its issued share capital.
Boohoo, which sells Revolution cosmetics on a number of its websites and its Debenhams platform, previously had a 12.85 per cent holding in the firm’s shares.
The investment “reflects boohoo’s belief in the growth potential of Revolution Beauty and it intends to be a supportive stakeholder and long-term partner,” a statement on the London’s Stock Exchange on Monday afternoon stated.
Boohoo’s share price swelled some five per cent in afternoon trading on Monday, following the news.
Revolution Beauty said on Monday its current chief operating officer Bob Holt would be stepping into the top job, after Holt was made responsible for the daily management of the firm last month.
Its previous CEO Adam Minto quit his role earlier this month after the firm called in investigators in September when auditors flagged “serious concerns” amid its transition from a private to public company.
The AIM-listed lipstick seller said no conclusions had yet been drawn by the independent investigation.
HSBC and NatWest, the brand’s main bank lenders, have recruited financial advisers at Teneo to monitor the situation, Sky News reported on Monday.
Teneo had been hired in recent weeks, according to a source close to Revolution, cited by the news organisation.
The probe being carried out by Forensic Risk Alliance and Macfarlanes is still ongoing, with the firm promising an update would be released to the market “in due course.”
The beauty giant saw its executive chairman Tom Allsworth voluntarily step away from duties last month, as well as top boss Minto.
Revolution was unable to sign off its already delayed full year accounts earlier this autumn, meaning its shares continued to be suspended on Monday.
The appointment of Holt “comes at a crucial time” after what has been “a highly damaging few months,” Joshua Raymond, director at online investment platform XTB.com told CityA.M..