Revolution Beauty's Chairman and CEO to 'step away' amid investigation

Revolution Beauty Group's Executive Chairman Tom Allsworth and CEO Adam Minto have agreed to temporarily step away from the business, as part of an investigation being carried out into its 2022 audit.

Allsworth and Minto will remain Directors of the group but will not take part in any day-to-day decisions concerning Revolution Beauty until completion of the independent investigation.

The group has said the decision to step away is not a result of any matter arising from the independent investigation to date.

The board, including Allsworth and Minto, believe that the group requires "an operational leader that can devote their full time and attention to managing the group's business and lead the ongoing discussions with the group's stakeholders".

Revolution Beauty Group has appointed Bob Holt OBE as Interim Chief Operating Officer, subject to completion of customary regulatory due diligence. Holt is an experienced public company executive, who has "successfully" led a number of PLCs through flotations and turnarounds, most recently as Chairman of SureServe Group and Mears Group.

The announcement follows the launch of an investigation into Revolution Beauty Group after its auditor, BDO, raised “serious concerns” over its inability to publish an audit report for the latest financial year.

Law firm Macfarlanes LLP and consultants Forensic Risk Alliance are leading the investigation into the business, which is expected to take several months to complete.

The beauty and skincare giant also warned that its financial results for the forthcoming year will be materially below market expectations, despite entering the typically stronger autumn and winter sales period. Revolution Beauty said it has been affected by a number of economic headwinds, including the war in Ukraine, changing consumer spending patterns and cost inflation.