Boohoo blasts Revolution Beauty after it defies shareholder vote
Boohoo Group has accused Revolution Beauty of behaving inappropriately after it defied a shareholder vote at an eventful annual general meeting yesterday, leading to the firing and re-hiring of CEO Bob Holt, CFO Elizabeth Lake and Chairman Derek Zissman.
The group attempted to oust Revolution Beauty's bosses at the AGM by voting against the re-appointment of three senior directors to the board.
Votes against the re-elections secured over 73%, but remaining independent director Jeremy Schwartz opted to defy the vote and reinstall the team afterwards.
Schwartz said his decisions were “not taken lightly” but that he acted to restore Revolution Beauty’s shares to the AIM stock exchange, which have been suspended from trading since last year following an auditing probe.
However, Boohoo blasted the move as “self-serving”, voicing “serious concerns” over the group’s conduct following the AGM.
“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.”
After Revolution Beauty’s shares resumed trading this morning (28 June), its share price rocketed by more than 50%.
Its senior management team were subsequently granted share options to “reward them for the hard work done” and for improving the group’s sales, it said.
Boohoo said it wants the company to reconvene to honour the shareholder vote and appoint its own directors to the board, and “not to resort to further attempts to obstruct shareholders”.
It is understood the retailer is also appealing to the AIM stock market and the financial regulator following the AGM events.
Another shareholder meeting is due to be held later in the summer.