The Revolution Beauty co-founders are returning to “reset” the company, after it failed to find a suitable buyer.

Co-founders Tom Allsworth and Adam Minto are set to return to the retailer, after stepping down following a host of accounting problems.

It comes after Revolution Beauty launched a formal sale process earlier this year, following a takeover approach. 

However, the beauty brand said it had not had any suitable offers and that it was no longer seeking a buyer.

The business unveiled plans to raise around £15m from investors by issuing new shares.

The move will see Allsworth return as Revolution Beauty’s CEO to take charge of its turnaround. Minto will return to the business in a consultancy role.

Speaking to investors, the company said the co-founders would implement a “new and refreshed strategy for Revolution Beauty, with a view to returning it to long-term profitability.”

The news comes as Revolution Beauty reported a pre-tax loss of £16.8m for the year ended 28 February, compared to a £11.4m profit the year before.

Sales plunged 25.5% to £142.6m over the period, as the brand struggled to shift discounted stock. 

Revolution chairman Iain McDonald said: “Revolution Beauty is a great brand, but the business has lost its way.

“We are confident that with a return to the founder-led management team who originally scaled the brand, there is a clear path back to growth and long-term value creation.”

He added: “This will be achieved with a re-balanced strategy which will return Revolution Beauty to its original formula for success, fast, trend-driven innovation combined with a product-led strategy.”

Earlier this month, it was reported that Revolution Beauty turned down a takeover proposal from private equity firm True, according to sources familiar with the matter.

In June, Frasers Group also dropped out of the race to acquire the company.

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