Dive Brief:
- Revolution Beauty’s Chief Financial Officer Elizabeth Lake will step down from the position on Dec. 31, according to a Wednesday announcement. The executive has also left the company’s board effective immediately.
- Neil Catto — currently a non-executive director and previously served as group CFO of Boohoo Group — will take over the CFO role on Jan. 1. Former The Body Shop International executive Erin Brookes has been appointed to the board as an independent non-executive director.
- Revolution Beauty announced a settlement agreement with company co-founder and former Executive Chairman Tom Allsworth related to its previous acquisition of Medichem Manufacturing Limited. Revolution Beauty will pay Allsworth a net amount of 270,000 pounds (about $338,000 at press time) after the co-founder incurred legal fees partly connected to the investigation of the Medichem deal.
Dive Insight:
Lake’s exit follows a months-long dispute with one of Revolution Beauty’s shareholders.
"My focus over the past 18 months has been on addressing the well-documented issues the business has faced,” Lake said in a statement. “During that time, we have significantly strengthened the Group's financial position, improved internal controls and implemented a full set of accounting policies that enabled the filing of the Group's financial statements and the resumption in trading of Revolution Beauty's shares. With the business back to profitability and well placed for sustainable profitable growth, it is the right time for me to explore new opportunities.”
On top of the CFO change and settlement with its co-founder, Revolution Beauty continues to seek a settlement with former CEO Adam Minto concerning a delayed audit of its fiscal 2022 results and the suspension of trading its shares.
As part of a larger board dispute amid significantly delayed financial filings, fashion retailer Boohoo — which has a 26.6% stake in Revolution Beauty — earlier this year requested that Lake, along with former CEO Bob Holt and Senior Independent Director Derek Zissman, be removed from the board.
In July, Revolution Beauty and Boohoo entered into an agreement wherein Holt and Zissman exited the company as Alistair McGeorge, Neil Catto, Rachel Horsefield and Peter Hallett joined the board. At the time, the settlement meant Lake would remain in the CFO position and on the board.
The U.K.-based Revolution Beauty launched at Walmart in April, expanding the makeup brand’s U.S. presence and marking its fourth major retailer to carry its products in the last three years.
Lake’s departure adds to a growing list of companies that have switched up their CFOs over the past few months.
Pet supply company Chewy earlier this month named David Reeder as its new CFO, effective in February. Ulta Beauty also announced in December that CFO Scott Settersten would retire from the position in April (with Paula Oyibo taking over) while Claire’s tapped former Parade executive Chris Cramer as its new CFO and chief operating officer.
