The chief executive of Revolution Beauty, Bob Holt, is set to resign as part of a compromise agreement being negotiated with Boohoo, reports Sky News.
Following his removal by Revolution shareholders at the annual meeting and subsequent reinstatement, Holt’s departure remains uncertain, depending on the appointment of a successor.
Holt’s resignation is a crucial component of the peace deal being hammered out between Revolution and Boohoo, which holds a 26.6% stake in the beauty products retailer. Details of the other aspects of the agreement remain undisclosed.
Taking up the role just eight months ago amidst an accounting scandal that led to the suspension of Revolution’s shares, Holt’s tenure has been brief. Revolution recently released a stock exchange announcement notifying the requisition of an extraordinary general meeting (EGM) by Boohoo, including a resolution for Holt’s removal as a director. However, the board expressed optimism in reaching a compromise with Boohoo in the coming days to avoid the expenses and negative consequences of the EGM.
In a further development, Boohoo plans to send a letter to AIM regulatory authorities seeking clarification from Revolution regarding a previous stock exchange announcement alleging obstruction of efforts to finalise accounts. Boohoo also seeks assurances that voting decisions at an upcoming Revolution Beauty EGM will be respected and not overturned.
Insiders revealed that Boohoo is contemplating requisitioning a second general meeting to remove additional Revolution directors and appoint independent board members. Boohoo accuses Revolution of disregarding corporate governance best practices by reappointing three executives immediately after their removal at the annual meeting, alleging greed as the motive behind the move, as it allowed the reinstated directors to receive valuable share options.
Revolution refuted these allegations, arguing that the reappointment was necessary to facilitate the resumption of share trading.