Feud between Revolution Beauty and Boohoo escalates as makeup brand attacks its largest shareholder as ‘opportunistic and selfish’
- Revolution defended its chaotic annual meeting this week
- Senior board members were fired and then rehired
- Revolution defied the vote of a majority shareholder
The feud between Revolution Beauty and Boohoo escalated when the makeup brand attacked its largest shareholder as “value-destroying, opportunistic and selfish.”
Revolution defended its chaotic annual meeting this week, where senior board members were fired and then rehired.
The Kent firm says that had it not acted as it did, its shares – suspended in September – would not have been re-admitted to trading on AIM.
“The board continues to believe that Boohoo’s hostile actions are value-destroying, opportunistic and selfish, as well as not in the best interest of the company’s shareholders as a whole,” it said.
The battle between the two retailers boiled over this week after Revolution defied a majority shareholder vote and reinstated chief executive Bob Holt, chief financial officer Elizabeth Lake and chairman Derek Zissman, who were ousted by Boohoo, leading to a successful vote against them .
Row: The battle between the two retailers boiled over this week after Revolution defied a majority shareholder
But they were reappointed by independent director Jeremy Schwartz and the bosses got more than 11 million shares worth nearly £3 million.
“The response from the stock market and wider stakeholders confirms the actions taken after the AGM, which were lawful and fully consistent with the statutory duties of directors,” Revolution said.
Shares rose 13.5 percent, or 3.7 pence, to 31.2 pence yesterday.
Boohoo, which has a 26.6 percent stake, said: “As the largest shareholder, we remain strongly convinced that Revolution Beauty should be led by an effective and experienced team with directly relevant beauty experience.”
Victoria Scholar, an analyst at Interactive Investor, said: ‘This drama is far from over with a long road ahead for the two sides to mend the damaged relationship.’