Pure Beauty

Revolution Beauty defends chaotic AGM as Boohoo scuffle continues

By Alessandro Carrara | Published: 30-Jun-2023

Boohoo voted to fire CEO Bob Holt, finance boss Elizabeth Lake and Chair Derek Zissman, who were then immediately reappointed by remaining Board Member Jeremy Schwartz

Revolution Beauty has defended its chaotic annual general meeting (AGM) this week which saw the firing and rehiring of senior board members.

The embattled British beauty brand said the actions taken at the meeting have been “firmly validated” after its stock prices jumped 45% in early trading yesterday.

Revolution Beauty’s trading shares were reinstated on the AIM on 27 June following the AGM, after originally being suspended in September 2022.

It added that it has received positive feedback from stakeholders, who see it as the start of the next phase in the company's journey after a challenging year.

“The actions taken by the directors after the AGM were the only reason that the company's shares were re-admitted to trading earlier this week,” Revolution Beauty said in a statement.

“The directors did not and do not intend to frustrate shareholder democracy but were put in an extremely difficult position by boohoo's actions.”

During the AGM fast fashion retailer Boohoo, which is Revolution Beauty’s largest investor, voted to oust CEO Bob Holt, finance boss Elizabeth Lake and Chair Derek Zissman.

However, remaining Board Member and Director Jeremy Schwartz made the decision to immediately reinstate the trio, who will all continue in their previous roles.

Holt, Lake and Zissman will also receive more than £3m worth of shares as a “reward” for their efforts in restoring the company’s status on the stock market.

Boohoo called Schwartz’s move an “abuse of process” and “self-serving”, and added that the board is not acting in the best interests of shareholders.

Revolution Beauty stressed that despite the “unwelcome and opportunistic attack” on the company, it does not wish to have a prolonged PR battle with Booboo.

It added that Boohoo has declined all efforts to engage in discussions with the board.

“Boohoo have provided no detailed rationale for their hostile approach, nor have they set out any strategy and future plans for the company if it were to gain board control,” Revolution Beauty said in a statement.

The drama comes after Boohoo revealed its intentions to instate an all new board for the cosmetic retailer’s leadership team earlier this month.

This included Alistair McGeorge, Non-Executive Chair of The Original Factory Shop, and Neil Catto, a former Executive Director for Boohoo, who were put forward for the reconstituted management team.

The Manchester-based company also approached ex-THG Beauty CEO Rachel Horsefield to join its independent leadership team for the attempted takeover.

But Revolution Beauty hit back at Boohoo’s attempted coup, calling it “value-destructive, opportunistic and self-serving”.

It claimed that Boohoo’s actions were a “cynical attempt” to seize control of the company without proper financial guidance.

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