// The beauty group is taking legal action against its founder and former CEO Adam Minto
// It comes as the retailer’s largest shareholder Boohoo is set to launch a coup at its next AGM
Revolution Beauty is taking legal action against its founder and former chief executive Adam Minto after the group was forced to suspend its shares due to accounting irregularities.
The group has written to Minto claiming he breached his statutory and contractual duties, which led to the delay of the firm’s 2022 audited financial accounts and the suspension from the London Stock Exchange.
Minto stepped down last November. Last month, Revolution Beauty finally posted its delayed financial results, which were ‘significantly below’ its forecasts following an auditing probe found it had inflated sales by £9 million to meet its annual targets.
The beauty 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.
Minto has until 7 July to respond to Revolution’s legal letter, although so far, the firm had not received a substantive response from Minto or his representatives.
“The company takes these matters extremely seriously,” the retailer said in a statement.
“It is important for shareholders to note that there can be no certainty on the outcome of these legal proceedings, and the company will make further updates to shareholders as appropriate in due course.”
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The proposed legal action comes as Revolution Beauty’s largest shareholder Boohoo, which owns 26.6%, is preparing to launch a coup at the company’s annual general meeting next week.
The online fashion retailer revealed yesterday that it will vote against reappointing Revolution’s CEO, CFO and chair at its AGM next week as it seeks to install Alistair McGeorge, the former New Look boss, and ex-Boohoo FD Neil Catto at the helm.
Revolution Beauty added that it would make an announcement following the news from Boohoo in the coming days.
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