Revolution Beauty chairman, CEO "step away" from ops as audit investigation continues
Troubled Revolution Beauty Group had more bad news Friday, saying its executive chairman Tom Allsworth and CEO Adam Minto have “voluntarily” agreed to step away from the day-to-day management of the business.
This comes as an independent investigation into the multi-channel mass beauty retailer’s audit failures continues with trading in its shares suspended.
In the meantime, Bob Holt has been appointed interim chief operating officer, “subject to completion of customary regulatory due diligence”, the Revolution board said.
The company stressed that the decision for Allsworth and Minto to step away “is not a result of any matter arising from the independent investigation to date”.
It added: “The board, including Tom and Adam, considers that at the current time, the group requires an operational leader that can devote their full time and attention to managing the group's business and lead the ongoing discussions with the group's stakeholders, including customers, suppliers and banking partners”.
Both Allsworth and Minto Tom will remain directors “but will not take part in any day-to-day decisions concerning the group until completion of the independent investigation”.
The board added: “Bob Holt is a highly experienced public company executive who has successfully led a number of PLCs through flotations and turnarounds.”
Revolution Beauty announced the suspension of its shares on 1 September after admitting it would be late with its audited final results and annual report for FY22. Consultants Forensic Risk Alliance and law firm Macfarlanes are conducting the ongoing investigation.
Despite its issues, Revolution is understood to have "solid" backing and it still has appeal with fashion e-tail giant Boohoo acquiring a 7.1% stake in the group this summer. Boohoo said at the time its stake buy came as it believes in the growth potential of Revolution and “intends to be a supportive stakeholder and long-term partner”.
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