Revolution Beauty in authorized combat with ex-boss over share suspension
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roubled make-up model Revolution Beauty is contemplating authorized action towards its former boss Adam Minto, “looking to recover material sums” from him, because it alleges Minto’s actions contributed to the agency’s disagreement with auditors and share suspension.
Revolution shares have been suspended since September of 2022 after it couldn’t get auditors to log out on its accounts for the earlier monetary yr.
The audited accounts had been finally revealed final month, displaying the business made £23 million lower than it had beforehand reported, however shares stay suspended.
The make-up retailer stated it despatched a letter of declare to Minto, who give up in November, on 19 May. That letter alleged he “breached his fiduciary, statutory, contractual and/or tortious duties to the company”.
“Certain of the matters alleged contributed to the delay in the audit of the Group’s FY22 results, and to the suspension of the company’s shares from trading on AIM,” it stated.
“The Company is looking to recover material sums relating to the exceptional costs the company incurred as a result of the matters alleged.”
Revolution set Minto a deadline of seven July to reply. It says he has not performed so but.
Yesterday, main Revolution shareholder Boohoo referred to as for the elimination of a variety of the sweetness model’s administrators together with chief govt Bob Holt, chairman Derek Zissman and chief monetary officer Elizabeth Lake. It stated it could vote towards the reappointment of those administrators on the agency’s 27 June AGM.
Boohoo stated the overhauled board ought to then “undertake a rigorous process” to nominate further unbiased administrators.
It stated: “As Revolution Beauty’s biggest shareholder, Boohoo is grateful to Bob, Derek and Elizabeth for stabilising the business.
“However, as Revolution Beauty transitions to its next phase, where the focus must switch to growth, Boohoo believes a senior leadership team with the right retail, e-commerce and consumer brands experience is required to deliver shareholder value.”