// Revolution Beauty brands Boohoo’s attempt of a coup as “value-destructive, opportunistic and self-serving”
// The beauty business is planning to postpone its AGM until late July or August
Revolution Beauty has branded Boohoo’s attempt to take control of the group as “nothing short of value-destructive, opportunistic and self-serving”.
The online retailer revealed it would vote against the reappointment of chief executive Bob Holt, chair Derek Zissman and CFO Elizabeth Lake at its next AGM.
Responding to the announcement, the beauty business said the move was “not being in the interests of the company’s shareholders”.
“Boohoo’s actions appear to be a cynical attempt to seize control of the company without financial outlay nor any compensation to Revolution Beauty shareholders,” it said.
The group added it would be a “reckless strategy” unless Boohoo were confident of support from other shareholders.
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The fast fashion retailer’s attempt of a coup comes during a tumultuous time for Revolution Beauty, which was forced to suspend its shares last November and delay its 2022 audited financial accounts due to accounting irregularities.
As a result of Boohoo’s plans to oust its leadership team, the group will propose at its AGM next Tuesday to postpone the meeting until late July or August.
It said: “shareholders must be given sufficient time to consider whether they believe that boohoo’s proposed seizure of majority control is a viable strategy that shareholders other than boohoo wish to support.”
Chief executive Bob Holt added: “We have a clear strategy, ongoing momentum and a highly relevant and attractive customer offer, demonstrated by the encouraging recent trading performance of the business.
“While we operate an omni-channel approach, our future growth is first and foremost via a global retailer strategy.
“This is clearly at odds with boohoo’s entirely online model.”
Revolution Beauty launched legal action against co-founder and chief executive Adam Minto on Tuesday claiming he had breached his statutory and contractual duties.
The business said it was looking to recover the costs the company had incurred “as a result of the matters alleged” without specifying the amount it aimed to recover.
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