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Boohoo takes Revolution Beauty row to stock market regulator

Sophie Smith
10 July 2023

Boohoo Group is drafting a letter to the AIM regulator as it considers plans to requisition a second extraordinary general meeting (EGM) at Revolution Beauty.

The group is contacting the AIM regulatory authorities demanding that Revolution Beauty clarifies an earlier stock exchange announcement that Boohoo had obstructed efforts to finalise its accounts, according to Sky News.

It also plans to seek assurances that voting decisions at a forthcoming Revolution Beauty EGM are upheld and not subsequently overturned.

Boohoo is reportedly considering requisitioning a second EGM in the coming days to remove additional Revolution directors and appoint more independent board members.

Over the last few weeks, Revolution Beauty and Boohoo have released a series of back and forth statements over the control of the troubled cosmetics company.

It began as Boohoo, which holds a 26.6% stake in the company, called for the removal of Revolution Beauty's CEO Bob Holt, Chairman Derek Zissman and CFO Elizabeth Lake at the firm’s annual general meeting on 27 June 2023.

The AGM took place and saw votes of over 73% against the re-elections of Holt, Lake and Zissman. However, remaining independent director Jeremy Schwartz then opted to defy the vote and reinstall the team afterwards.

Boohoo blasted the move as “self-serving”, voicing “serious concerns” over the group’s conduct following the AGM.

Revolution Beauty’s shares resumed trading on 28 June, which saw its share price rocket and shares worth around £2 million awarded to Holt, Lake and other senior executives to “reward them for the hard work done”.

One source told Sky News that an attempt to broker peace between the two companies was not impossible ahead of the first EGM, which is expected to take place in around a month's time.

Read's guide to Revolution Beauty and Boohoo Group's battle for control.

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