Boohoo doubles stake in struggling makeup firm Revolution Beauty fueling speculation it is planning a takeover
Boohoo has doubled its stake in Revolution Beauty – fueling speculation that it is planning a takeover of the beleaguered makeup company.
The online fast fashion retailer, which bought Debenhams, Dorothy Perkins and Pretty Little Thing in recent years, now owns 26 percent of Revolution.
Boohoo said it plans to be a “supportive” partner but would not comment on an acquisition.
Acquisition Talk: Boohoo, which bought Debenhams, Dorothy Perkins and Pretty Little Thing in recent years, has doubled its stake in Revolution Beauty
But veteran retail analyst Richard Hyman said, “You don’t just buy 26 percent of something for fun.”
Boohoo built a 13 percent stake in Revolution in August and sells its products online. It is now Revolution’s largest shareholder above founders Adam Minto and Tom Allsworth, who own about 16 percent each.
Last month, Minto stepped down from the company amid an investigation into its accounts. Revolution was suspended from the London Stock Exchange in September for missing a deadline to publish the results.
An investigation is underway after the auditor, BDO, expressed ‘serious concerns’ about the inability to publish an auditor’s report for the financial year.