Embattled Revolution Beauty is taking legal action against its founder and former chief executive Adam Minto.
The move comes after majority shareholder, Manchester online fashion giant Boohoo, announced this week it would be attempting to stage a boardroom takeover at the Essex-based company’s AGM on June 27.
Revolution Beauty’s latest step is not thought to be directly related to Boohoo’s move, but rather the suspension of Revolution Beauty’s shares last September due to accounting irregularities.
The group has written to Minto claiming he breached his statutory and contractual duties, which led to the delay of the firm’s 2022 audited financial accounts and suspension from the London Stock Exchange.
Minto stepped down last November, just as Boohoo increased its stake in the comapany. Last month, Revolution Beauty finally posted its delayed financial results, which were ‘significantly below’ its forecasts following an auditing probe found it had inflated sales by £9 million to meet its annual targets.
The beauty business said it was looking to recover the costs the company had incurred as a result.
Minto has until July 7 to respond to Revolution’s legal letter.
“The company takes these matters extremely seriously,” Revolution said in a statement. “It is important for shareholders to note that there can be no certainty on the outcome of these legal proceedings, and the company will make further updates to shareholders as appropriate in due course.”
