Revolution Beauty probe into lipstick seller’s accounts continues as lenders hire advisers
Revolution Beauty has named its new chief executive officer as Bob Holt as the business looks to move forward amid a probe into its accounts.
The troubled cosmetics retailer said on Monday its current chief operating officer 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.
Incoming chief Holt is no stranger to the retail world, alongside a CV boasting thirty years of experience in top jobs including the revival of energy support services SureServe and housing provider Mears.
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.”
There was a “huge opportunity” for the company as it hoped to move ahead, incoming boss Bob Holt said.
“Over the past six weeks I have seen first-hand the quality of people working at Revolution Beauty, the overall popularity of the brand and innovation of products for customers around the world,” he added.
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..
While the incoming boss would be facing a “huge in-tray of problems to deal with,” the analyst was hopeful that “he might well be the right person to deliver the change needed.”
Holt’s experience as C OO since October means he “should already be acutely aware of the issues” at hand, Raymond added.
“Additionally, whilst he may not necessarily have the reputation as a turnaround king, he does have previous experience in these sorts of situations from his time at Sureserve where he left with the firm’s shares price more than doubled during his tenure,” he said.