Boohoo airs ‘serious concerns’ over Revolution Beauty board changes

Boohoo has raised “serious concerns” about the conduct of the Revolution Beauty board after the company fired and rehired its directors at its AGM.

Revolution chief executive Bob Holt, finance boss Elizabeth Lake, and chairman Derek Zissman were all voted out of their positions with a nearly 75% majority for each.

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

Boohoo said in a statement: “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.

“It is notable that at no point did the remuneration committee seek prior shareholder consultation, or approval in relation to these awards, again contravening best practice in relation to corporate governance.”

Revolution responded: “The board reiterates its prior views regarding boohoo’s attempted hostile takeover of the company’s board. The approach taken by boohoo towards Revolution Beauty is nothing short of value-destructive, opportunistic and self-serving.

“At a time when, thanks to management’s tireless efforts, the company’s fortunes are significantly improved, with business back on track and restoration to trading on AIM occurring later today, boohoo is seeking to stage a board and management control coup without making a general offer, or paying a single penny, to independent shareholders of the company.”

Alongside this news Revolution also announced that its shares would be restored to trading on AIM.

The company’s shares were suspended from trading last year after it failed to produce its financial results on time.