- Revolution Beauty chief executive Bob Holt and chair Derek Zissman are to step down
- It is the latest twist in the boardroom battle after the duo, and the CFO, were reinstated after being ousted at an AGM in June.
- Shareholder Boohoo had raised serious concerns about the behaviour of the board.
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
‘’A double change at the top would usually cause a share price wobble but the ferocious row between Revolution Beauty and top shareholder Boohoo has been so consuming that sentiment has surged towards the company. A corporate spat in the public eye was not a good look and there is clearly relief that a truce has now been reached, with the chief executive and chair stepping down as part of the deal. Around three quarters of investors had voted to oust the pair, along with CFO Elizabeth Lake at the AGM in June, but they were reinstated by an independent director.
Approbation towards the team at the top was sparked after Revolution Beauty’s shares were suspended last September after auditors raised concerns about its financial accounts and the company filed to publish annual results. Elizabeth Lake will remain in position but there are hopes this announcement will bring an end to the hokey-cokey corporate shuffling. Shares jumped 7% before losing some ground but the share price remains still remains deeply depressed compared to the level achieved when the company floated on the London Stock Exchange two years ago, and the new CEO, when appointed, will have their work cut out to demonstrate the enduring appeal and profitability of the cut-price make up ranges the company produces. While its fast-fashion model aims to adapt quickly to customer satisfaction and desires, it’s a highly competitive market and its losses surged in its long-awaited annual results, partly due to the high costs of transporting its products.
