Revolution Beauty CEO and chair step down amid Boohoo settlement deal
The settlement also saw Boohoo agree to withdraw its requisition of a general meeting
Boohoo and Revolution Beauty have brought an end to their ongoing feud with the signing of a settlement agreement that will see major board changes at the beauty retailer.
As part of the agreement, CEO Bob Holt OBE and chairman Derek Zissman agreed to resign from Revolution’s board, although Holt will remain as interim CEO until 31 August 2023.
The settlement also saw Boohoo agree to withdraw its requisition of a general meeting. Earlier this month, reports surfaced that Boohoo was considering requisitioning a second EGM to remove additional Revolution directors and appoint more independent board members.
Following the peace deal, Alistair McGeorge, Neil Catto, Rachel Horsefield and Peter Hallett will join the board of Revolution, with McGeorge appointed as executive chairman. Catto will become a non-independent non-executive director, while Horsefield and Hallett become independent non-executive directors.
Meanwhile, Elizabeth Lake will remain as CFO. Revolution said the new directors appointed at Boohoo’s request “are looking forward to supporting Elizabeth with her ongoing hard work on restoring the company to sound financial health”.
In an update regarding the agreement, Revolution Beauty said: “Entry into the settlement agreement with Boohoo brings to an end the recent uncertainty regarding the company, avoids the ongoing costs and disruption that would be associated with any alternative courses of action, and allows the company to get back to focusing on its core business objectives.
“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, as summarised in the company’s prior announcements.”
An ongoing battle between the two companies first began when Boohoo, which owns a 26.6% stake in Revolution, attempted a boardroom coup of the group.
Boohoo then criticised Revolution and raised “serious concerns” after the beauty company reappointed three executives immediately after they were removed at its annual meeting last month.
At the time, Holt, Lake, and Zissman were all voted out of their positions with a nearly 75% majority for each. However, remaining board member Jeremy Schwartz was elected with a 99% majority and subsequently rehired Holt, Lake and Zissman alongside two new non-executive directors.
While Boohoo criticised the move, Revolution said it received “very positive reaction from all stakeholders” following its actions, adding that the move was “firmly validated” from the stock market response, which saw its shares rise. It noted that rehiring its directors was the only way to secure readmission to trading on AIM.
The company’s shares were restored last month after being suspended for six months when it failed to produce financial results on time.
