Revolution Beauty says compromise with Boohoo is close
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 has now called for another general meeting at Revolution Beauty, where it hopes to successfully remove the retailer's directors and appoint more independent board members.
The Revolution Beauty board has unanimously recommended that shareholders vote against all of Boohoo’s resolutions to be proposed at the meeting.
However, the board believes that a compromise position with Boohoo is close and could be reached in the coming days.
If the board is able to reach a deal, Revolution Beauty said this would avoid the expense, administrative burden and other detrimental consequences for the company that would result from the general meeting.
It added that, if this compromise position is not reached in the coming days, the board will publish an announcement setting out its views on Boohoo’s proposed resolutions, the general meeting, and the situation in which the company has been placed.