Boohoo is allegedly taking its argument with Revolution Beauty to stock market regulator AIM as its leadership battle with the company continues.
The fashion retailer is drafting a letter to the regulatory authorities insisting that Revolution Beauty clarifies a previous stock exchange announcement that Boohoo had obstructed efforts to finalise its accounts, according to Sky News.
It is also seeking assurance that voting decisions at forthcoming Revolution Beauty extraordinary general meetings (EGM) are granted and then not subsequently overturned.
Insiders said Boohoo was considering requisitioning a second EGM in the coming days to remove additional Revolution Beauty directors and appoint more independent board members.
The boardroom battle between Boohoo and Revolution Beauty has been going on for weeks.
This is after Boohoo – Revolution Beauty’s largest stakeholder – tried to oust the cosmetics brand’s current leadership team and install its own representatives at the helm.
Boohoo voted to fire Revolution Beauty CEO Bob Holt, finance boss Elizabeth Lake and Chair Derek Zissman at the make-up company’s annual general meeting (AGM) on 27 June.
However, remaining Board Member and Director Jeremy Schwartz made the decision to immediately reinstate the trio.
Boohoo called Schwartz’s move an “abuse of process” and said the board was not acting in the best interests of shareholders.
The British beauty brand has defended its action taken at the AGM, stating the move had been “firmly validated” after its stock prices jumped 45%.
The company also hit back at Boohoo’s attempted coup, calling it “value-destructive, opportunistic and self-serving”.
Revolution Beauty’s stock was restored on 27 June nine months after it had been suspended due to serious accounting concerns at the company.
A damning investigation found that Revolution Beauty co-founders Adam Minto and Tom Allsworth had made personal loans of around £1m to distributors and a senior employee.
However, none of these arrangements were disclosed to the board at an appropriate time.
The probe also found that Revolution Beauty had overstated its profit by around £23m in its 2022 financial year.
Read more:
- Revolution Beauty and Boohoo’s boardroom battle explained
- Revolution Beauty reports 60% sales jump amid Boohoo leadership battle
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