Revolution Beauty faces FCA probe into potential market abuse
The Financial Conduct Authority has launched an investigation into Revolution Beauty over potential breaches of market abuse from July 2021 to September 2022.
The company said it is “cooperating fully with the FCA”, but didn't specify the issues being probed. It added that “further announcements will be made as appropriate”.
The investigation comes after the company's shares resumed trading last month, having been suspended since last autumn after auditors refused to sign off its accounts – sparking a previous investigation into its finances.
The news marks the latest setback for Revolution Beauty, following its recent spat with top shareholder Boohoo Group 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.
Following a series of back and forth statements, the businesses reached a settlement agreement last week. This saw Holt and Zissman step down for their roles.
Former New Look Chair Alistair McGeorge succeeds Zissman as Executive Chairman, whilst ex-Boohoo finance boss Neil Catto will become Non-Independent Non-Executive Director.
Revolution Beauty is now searching for a CEO replacement with "extensive experience of the beauty sector, retail and consumer brands".