// Revolution execs Bob Holt, Elizabeth Lake and Derek Zissman were fired and rehired in chaotic AGM
// The online beauty retailer’s largest shareholder Boohoo attempted a rebellion at yesterday’s meeting
Revolution Beauty had a disorderly annual general meeting on Tuesday, as its largest shareholder Boohoo staged a rebellion, leading to the firing and re-hiring of chief executive Bob Holt, finance boss Elizabeth Lake, and chairman Derek Zissman.
Boohoo, which owns about 26.6% of Revolution Beauty, was among nearly 75% of investors who voted to oust the cosmetics retailer’s three most senior directors. Yet, they were immediately reinstalled by the remaining director Jeremy Schwartz.
Zissman tried to delay the meeting because Boohoo Group was attempting to take control of the board by appointing its own candidates to run Revolution Beauty. Boohoo said it can’t see “how such a board can claim to be acting in the best interests of shareholders, and is instead self-serving”.
But in a convoluted series of moves last night, the postponement was blocked.
The drama deepened when Zissman, Holt and Lake were removed from the board, leaving just Schwartz in place.
Schwartz then appointed a new slate of directors, including the three who had just been ousted, who will remain in their previous roles.
Revolution Beauty said Boohoo’s stance is “nothing short of value-destructive, opportunistic and self-serving”.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
“Revolution Beauty’s Board and management team, supported by their exceptional group of staff, have worked tirelessly for the last 10 months towards resolving the historical issues which have resulted in many detrimental outcomes for the company’s shareholders and other stakeholders,” the company said in a statement.
Following the AGM, Boohoo Group said it wished to “record the serious concerns it has regarding the conduct of the board of Revolution Beauty at, and immediately following, the AGM, which it regards as self-serving and not in the best interests of shareholders.”
Boohoo Group said Jeremy Schwartz went against corporate governance best practices and disregarded the opinion of the company’s shareholders, leading to the firing and then re-hiring of senior directors who had just been removed by the shareholders.
Boohoo will aim to speak to the London Stock Exchange and the financial regulator about the events this week, according to people familiar with the situation, the Financial Times reports.
Revolution Beauty’s shares are due to be restored to trading on AIM at 7.30am today after being suspended last autumn amid an accounting scandal.
Click here to sign up to Retail Gazette‘s free daily email newsletter
