Boohoo once again ups stake in Revolution Beauty

Following the settlement of an ongoing rift between the duo, fashion group Boohoo has once again upped its stake in British cosmetics firm Revolution Beauty.

Boohoo, which was already a majority shareholder in the beauty label, has now increased its holding from 26.5 percent to just over 27.1 percent.

The group first snapped up a stake in Revolution in early August of 2022, just weeks before the brand was forced to suspend its shares on AIM due to concerns over its FY22 audit.

At the time, Boohoo said the investment built on the existing relationship between Boohoo and Revolution, which sells products via several of the group’s direct-to-consumer brand websites and its online digital department store, Debenhams.

Since this initial investment, however, the relationship between the two companies has become increasingly complex.

After an independent investigation into Revolution’s financials revealed inflated revenues, Boohoo demanded for the firm’s leadership to step down, leading to a tug-of-war between the duo, both dubbing the other “self-serving”.

Ultimately, Boohoo came out on top via a settlement agreement that saw its proposed board appointments replace the majority of Revolution’s board.

Its most recent stake increase could hint at Boohoo’s plans to possibly attempt a fully-fledged takeover of Revolution in the near future.

The group has been upping its efforts in the lucrative beauty sector amid declining revenues elsewhere, as seen with the expansion of its own beauty brand and the bolstering of its third-party brand offering.