Revolution Beauty negotiating with founder over settlement funds

Following a year of mishaps and legal trouble, Revolution Beauty has confirmed that it is currently in negotiations with founder Adam Minto on a potential agreement to settle a legal proceeding brought against the former chief executive.

In a release issued through the London Stock Exchange, on which Revolution is listed, the beauty brand addressed media speculation that it had been in such discussions, both with Minto and former executive chairman, Tom Allsworth.

In June, Revolution revealed that it was pursuing legal action against Minto, who stepped down from the helm of the company in November 2022, regarding a faulty audit earlier in the year that led to the delay of its FY22 results and the suspension of the company’s shares on AIM.

At the time, the British firm said it was looking to recover material sums of the “exceptional costs the company incurred as a result of the matters alleged”, with Minto initially set the deadline of July 7 to respond.

Both Minto and Allsworth had come under fire after an investigation into Revolution’s accounts found that the duo had inflated sales by nine million pounds in order to meet annual targets.

Now, Revolution said it is in “negotiation” with Minto on the legal proceedings, while with Allsworth, the former owner of Medichem, the company is hoping to reach a revised agreement on the terms of its acquisition for the pharmaceutical firm.

The situation has put Revolution in a difficult predicament, leading its largest shareholder Boohoo Group to ultimately take over the board and a probe by a UK conduct authority being initiated earlier this year.