Under pressure Revolution Beauty secures lending agreement
Revolution Beauty has secured an amended facility agreement with its banking partners, as it looks to lift the suspension on trading in its shares.
The overall size of the loan has been agreed at £32m, down from the £40m previously negotiated, and has been fully drawn.
The multichannel retailer said that the lending facility reflects its cash requirements and provides sufficient liquidity. Revolution Beauty said that as of 28 February, its cash balance was £11m.
The retailer has been under pressure after an independent investigation found a number of wrongdoings, including regarding historical sales, methods of inventory provisioning and personal loans made by a former CEO.
After twice failing to post its annual results, Revolution’s shares were suspended from trading in September and the group was subsequently investigated by law firm McFarlanes and accountancy Forensic Risk Alliance.
Revolution now expects its audited results for the 2022 financial year to be posted by the end of April. It said it will be working with its nominated adviser to lift the current suspension as soon as these results are released.
In addition, the retailer said it is working towards posting its unaudited statements for the six-month period to August 31 2022.