Boohoo to contact market regulator amid ongoing Revolution battle

Boohoo is reportedly drafting a letter to the junior stock market regulator over plans to requisition an upcoming Revolution Beauty EGM amid the escalating row between the two companies. 

According to Sky News, the retailer will contact AIM regulatory authorities to demand that Revolution clarifies an earlier stock exchange announcement that Boohoo had obstructed efforts to finalise its accounts.

Insiders told Sky that Boohoo will also try to seek assurances that voting decisions at the upcoming Revolution Beauty EGM are upheld and not then overturned.

Sources said that Boohoo was considering requisitioning a second EGM in the coming days to remove additional Revolution directors and appoint more independent board members.

The move marks the latest stage in the ongoing battle between the two companies which began when Boohoo, which owns a 26.6% stake in Revolution, attempted a boardroom coup of the group. 

Boohoo then criticised Revolution and raised “serious concerns” after the beauty company reappointed three executives immediately after they were removed at its annual meeting last month. 

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. However, remaining board member Jeremy Schwartz was elected with a 99% majority and subsequently rehired Holt, Lake and Zissman alongside two new non-executive directors.

While 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 last month after being suspended for six months when it failed to produce financial results on time.

Boohoo and Revolution have been contacted for comment.