Dive Brief:
- Concluding a months-long feud, Revolution Beauty has entered into a settlement agreement with shareholder and fashion retailer Boohoo, according to a company release Tuesday.
- As part of the settlement, CEO Bob Holt and board Chair and Senior Independent Director Derek Zissman have agreed to step down from Revolution Beauty’s board. Holt will stay at the U.K.-based beauty brand as interim CEO until Aug. 31. Alistair McGeorge, Neil Catto, Rachel Horsefield and Peter Hallett will join the board, with McGeorge appointed as executive chairman.
- Additionally, Elizabeth Lake will remain on the board and stay in the CFO position. Boohoo has agreed to withdraw its request for a general meeting.
Dive Insight:
The settlement between Boohoo and Revolution Beauty follows a battle over the beauty brand’s board.
“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,” Revolution Beauty said in its release. “This is particularly important for Revolution Beauty in light of the significant disruption that the Group has faced in the past year.”
In early June, Boohoo — which holds a 26.6% stake in Revolution Beauty — asked the cosmetics company to convene a general meeting just days after it reappointed certain executives, such as Holt, to the board. The executives had been reappointed although such resolutions were not passed by shareholders.
The June re-appointments went directly against Boohoo’s expressed wishes to have Holt, Lake and Zissman removed from their positions on the board and have McGeorge and Catto appointed as directors.
The board dispute stemmed from Revolution Beauty’s shares being suspended in September 2022 based on a significant delay in the publication of its fiscal year 2022 accounts. An independent investigation was enacted based on “historical issues” involving serious accounting issues. Leadership changes occurred as a result of this investigation, which included Holt taking on the CEO position in November.
Boohoo wished to appoint a new, majority-independent board at Revolution Beauty based on these problems. Under the settlement, the board’s new directors will work with Lake to ensure “timely publication of the FY23 Accounts.”
The beauty company is starting a search to identify a new CEO with experience in beauty, retail and consumer brands.
