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Revolution Beauty has defended its actions at its AGM earlier this week, including the firing and rehiring of three top executives, after Boohoo criticised the move.
Revolution said it received “very positive reaction from all stakeholders” following its actions, adding that the move was “firmly validated” from the stock market response, which saw its shares rise. It noted that rehiring its directors was the only way to secure readmission to trading on AIM.
The company’s shares were restored this week after the group had previously been suspended from trading when it failed to produce financial results on time.
In its latest update, Revolution criticised Boohoo’s “hostile” actions since the AGM, calling them “value-destructive, opportunistic and self-serving, as well as not being in the interests of the company’s shareholders as a whole”.
It asked the clothing brand to “explain what its future plans and strategy for Revolution Beauty would be if its hostile takeover of the company’s board were to succeed”.
Earlier this week, CEO Bob Holt, finance boss Elizabeth Lake, and chairman Derek Zissman were all voted out of their positions with a nearly 75% majority for each following an attempted coup by Boohoo.
The remaining board member Jeremy Schwartz was elected with a 99% majority and subsequently rehired Holt, Lake and Zissman, however.
Revolution Beauty then handed its directors, including Holt and Lake, over 11 million shares valued at £3m, which led to Boohoo accusing Revolution of a “lack of transparency”.
Boohoo said: “Boohoo fails to see how such a board can claim to be acting in the best interests of shareholders, and is instead self-serving, as demonstrated by its actions over the last 24 hours. This will likely result in significant remuneration and share awards for members of a self-elected board at the lifting of the suspension of trading in its shares, which boohoo was pleased to hear is imminent.”
In its latest update, Revolution Beauty hit back at Boohoo, stating: “Despite the unwelcome and opportunistic attack on the company from boohoo, the board does not wish to have a prolonged PR battle and continues to be prepared to engage with boohoo in good faith and in a constructive manner. To date, boohoo has declined all efforts to engage in discussions with the board.
“Boohoo have provided no detailed rationale for their hostile approach, nor have they set out any strategy and future plans for the company if it were to gain board control. The current board believe these points are fundamental for all shareholders to consider as part of their voting decision and ask again for boohoo to set these out clearly so they can be detailed in the notice of general meeting to be posted to shareholders in the coming days, and so that the board are able to consider them and take them into account in their voting recommendation.”
