Pure Beauty

Revolution Beauty faces investigation into potential ‘market abuse’

By Alessandro Carrara | Published: 24-Jul-2023

It comes after Revolution Beauty reached a settlement agreement with Boohoo to end its month-long public spat with the fast fashion retailer

Revolution Beauty is facing an investigation by the Financial Conduct Authority (FCA) into alleged market abuse.

The potential misconduct relates to “certain matters” between July 2021 and September 2022, but the embattled beauty brand has not specified the exact details.

Revolution Beauty added it is fully cooperating with the FCA and will make further announcements “when appropriate”.

“The Financial Conduct Authority has today notified Revolution Beauty that it has commenced an investigation into potential breaches of the Market Abuse Regulation,” Revolution Beauty said in a statement.

The fresh drama comes just one week after Revolution Beauty reached a settlement agreement with Boohoo, ending a month-long public spat with the fast fashion retailer.

CEO Bob Holt and Chair Derek Zissman both resigned from the leadership team as part of the deal, with Boohoo appointing a reconstituted board.

This included Alistair McGeorge and Neil Catto, who joined the board as Executive Chairman and Non-Executive Director, respectively.

The beauty retailer agreed to the resolution to end “uncertainty” and avoid ongoing costs and disruption associated with the dispute.

“This is particularly important for Revolution Beauty in light of the significant disruption that the group has faced in the past year, including the suspension from trading of the company's shares and an independent investigation, in each case as a result of historical issues in the business,” said Revolution Beauty at the time.

The dispute between the two companies began on 19 June 2023 when Boohoo declared it was staging a coup against the beauty brand.

Boohoo claimed board members did not hold the “right retail, e-commerce and consumer brands experience” to deliver shareholder value and planned to oust the leadership team.

Revolution Beauty hit back at Boohoo’s takeover attempt, however, calling it “value-destructive, opportunistic and self-serving”.

The argument came to a head during a chaotic AGM in June which saw the firing and then subsequent rehiring of Holt, along with Zissman and CFO Elizbeth Lake.

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