Revolution Beauty now takes legal action against founder Adam Minto

By

Nigel TAYLOR

Published
Jun 20, 2023

Revolution Beauty just can’t catch a break. Uncertainty continues to plague the troubled beauty business with news it’s set to take legal proceedings against the company’s founder and former CEO Adam Minto. 

The announcement to shareholders, which comes just ahead of its 27 June annual general meeting, follows Monday’s bombshell that major shareholder Boohoo Group wants to exercise more control over the firm. It proposes to oust the current leadership team and replace them with a key Boohoo non-executive director and its former finance chief.

The firm’s claim against Minto alleges he “breached his fiduciary, statutory, contractual and/or tortious duties to the company”. It also alleges matters contributed to the delay in the audit of the group's FY22 results, and to the suspension of the company's shares from trading on AIM.  

It’s looking to recover “material sums relating to the exceptional costs the company incurred as a result of the matters alleged”.

But it has yet to receive a reply from Minto ahead of a proposed deadline of 7 July to the letter of claim sent on 19 May.

“The company takes these matters extremely seriously. 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,” it said.

Revolution’s shares remain suspended from trading following major accounting issues that delayed its accounts being signed off and uncovered “unacceptable” business practices.

Boohoo owns approximately 26.6% of the issued share capital of the firm. Although Revolution Beauty has yet to respond to Boohoo’s demands, next week’s AGM is destined to be a lively one.