Revolution Beauty considers legal action against former CEO
Embattled cosmetics brand Revolution Beauty is considering legal proceedings against its former CEO.
The brand said it had sent a letter to Adam Minto on May 19 which alleged that he breached his duties to the company.
Revolution said that these breaches contributed to the delay to the audit of the company’s 2022 results and the suspension of its shares on the London Stock Exchange.
It is now looking to recover material sums relating to the “exceptional costs” brought about by the alleged matters.
Revolution’s shares were suspended in September 2022 after it twice failed to post its annual results and became the subject of an investigation by law firm McFarlanes and accountancy Forensic Risk Alliance.
The investigation found that Minto had made personal loans or other investments to distributors which were not disclosed at the time. He was also found to have made personal loans to a number of senior managers, which were also not disclosed.
Revolution has set Minto a deadline of July 7 to respond.
The cosmetics brand also expects to publish an announcement in the coming days regarding the declaration made by majority shareholder Boohoo, which said it intends to remove members of the board and replace them with its own.