Revolution Beauty suggests compromise with Boohoo possible in coming days

Following a drawn out public spat between Revolution Beauty and Boohoo, the former has now said that a compromise position “is close and could be reached in the coming days”.

A general meeting at Revolution’s offices will be held on August 7, where Boohoo’s proposed board members will be offered as ordinary resolutions.

The group is seeking Alistair McGeorge and Neil Catto as directors, and has requested that CEO Robert Holt, Derek Zissman and Elizabeth Lake be removed.

While Revolution said that its board is unanimously recommending shareholders to vote against all resolutions, it does believe that a compromise position with Boohoo is close.

If reached, the company said that expense and administrative burden could be avoided. However, if a deal can not be made, the board will publish its views on the proposed resolutions.

General meeting to put forward Boohoo’s proposals

Evidence of a rift between the beauty firm and fast fashion group first came to a head when Boohoo announced its intention to vote against the reappointment of Revolution’s board directors, including its CEO and CFO, at an AGM on June 27.

Its decision to do so was cited to be aiding Revolution in its transition to the next phases, with the group proposing two new appointments to the board to further this move.

Boohoo upped its stake in Revolution to 26.6 percent last year amid an investigation into the beauty company’s FY22 accounts, which ultimately revealed inflated sales of nine million pounds.

Revolution branded Boohoo’s proposed changes as “opportunistic and self-serving”, leading to reports that Revolution had ultimately reappointed its directors despite Boohoo’s efforts to oust them.

In response, Boohoo claimed that “at no point did the remuneration committee seek prior shareholder consultation” in regards to the reappointment, and called on the board to convene the “requisitioned general meeting”.

Revolution ultimately denied the claims, stating that certain shareholders received incorrect communications from several online stockbroking platforms to put forward their votes. The relevant platforms have now been contacted to amend the mistake.