City watchdog launches investigation into Revolution Beauty
City watchdog, the Financial Conduct Authority (FCA) has begun a probe into online beauty retailer Revolution Beauty Group.
In a notice to the stock exchange late this afternoon Revolution, which has undergone a public and bruising spat with 26.6% key shareholder, Manchester-based online fashion retailer boohoo, revealed that it had been notified of the move by the FCA.
It said the watchdog “has commenced an investigation into potential breaches of the Market Abuse Regulation (EU) 596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018) in relation to certain matters in the period from July 2021 to September 2022.”
It added: “Revolution Beauty is cooperating fully with the FCA.
“Further announcements will be made as appropriate.”
Revolution suspended trading in its shares on September 1, 2022, as it was unable to complete its audit for the financial year ended 28 February 2022 and publish its annual report and accounts by 31 August 2022.
Trading in Revolution shares was only restored on June 28, 2023.
Majority shareholder, boohoo,wanted to oust Revolution’s existing board and replace it with its own nominees.
It voted against the reappointment of Bob Holt, Derek Zissman, and Elizabeth Lake at Revolution’s June 27 AGM, only for them to be reinstated to meet governance requirements.
However, his week, Revolution and boohoo buried the hatchet after agreeing that Elizabeth Lake will remain as CFO, removing the previous concerns that the FY23 Accounts could be delayed and the company’s trading on AIM once again threatened.
The deal involved the resignations of chief executive Bob Holt and director Derek Zissman, although Holt will stay on as interim CEO until the end of August 2023.
Boohoo’s preferred boardroom team of Alistair McGeorge, Neil Catto, Rachel Horsefield and Peter Hallett will join the board, with former Matalan and Littlewoods boss McGeorge being appointed as executive chairman with the others becoming independent non-executive directors.
This latest twist in the Revolution saga will throw even more of a spotlight on the business.
