Why did Boohoo shares jump 6% today?

Boohoo (LSE: BOO), the popular online retailer, saw a notable increase in its share price, rising by 6% to reach 34.90 pence at the close of trading in London today. The surge can be attributed to Boohoo’s call for significant changes within the board of Revolution Beauty Group, a company in which Boohoo holds a stake of just under 27%.

The FTSE AIM listed company has taken a strong stance, publicly stating its intention to vote against the reappointment of Chief Executive Bob Holt, Chair Derek Zissman, and Chief Financial Officer Elizabeth Lake as directors at Revolution Beauty’s upcoming annual general meeting. Boohoo has also requested a general meeting, where it plans to propose the removal of these directors and the appointment of Alistair McGeorge as executive chair and Neil Catto as CFO.

Alistair McGeorge, a non-executive director at Boohoo, currently serves as the non-executive chair of East Imperial PLC, a producer of tonic waters and mixers. Neil Catto, currently a non-executive director at indie games publisher tinyBuild Inc, previously held the position of chief financial officer at Boohoo from 2011 to 2022.

“As Revolution Beauty transitions to its next phase, focusing on growth, Boohoo believes that a senior leadership team with the appropriate retail, e-commerce, and consumer brands experience is necessary to deliver value to shareholders,” Boohoo explained. “While acknowledging Bob, Derek, and Elizabeth’s contributions in stabilising the business, as Revolution Beauty’s largest shareholder, Boohoo is calling for a change in leadership.”

Trading in Revolution Beauty shares has been suspended since September 1 after the company failed to deliver its first audit by the August 31 deadline. Revolution Beauty made its debut on the London Stock Exchange in July 2021 with a market capitalisation of approximately £500 million.