he chairman and chief executive of Revolution Beauty are to resign from the under-pressure company in a bid to put an end to a shareholder revolt.
Bob Holt and Derek Zissman plan to step down from their positions, after reaching an agreement with Boohoo, which owns more than a quarter of the business’s shares.
Mr Holt will stay on as interim chief executive until the end of August, the company said.
The news follows a long list of problems at Revolution Beauty, whose shares were suspended for several months after it found issues in its accounts.
Boohoo believes the settlement agreement is in the best interests of Revolution Beauty and its shareholders
No sooner had it appeared to emerge from those problems than new ones reared their head.
Boohoo, which owns a 26.6% stake in Revolution Beauty, said it planned to vote against the reappointment of Mr Holt, Mr Zissman and chief financial officer Elizabeth Lake.
The investor said Revolution Beauty has stabilised under the three bosses, but now needs to focus on growth.
It sparked a strong war of words between the two companies but on Tuesday it appeared that Revolution Beauty had at least in part backed down.
Ms Lake will continue in her role.
Boohoo said the agreement “among other things, will result in the reconstitution of the board of Revolution Beauty.
“Boohoo believes the settlement agreement is in the best interests of Revolution Beauty and its shareholders.”
Revolution Beauty said: “Entry into the settlement agreement with Boohoo brings to an end the recent uncertainty regarding the company, avoids the ongoing costs and disruption that would be associated with any alternative courses of action, and allows the company to get back to focusing on its core business objectives.
“This is particularly important for Revolution Beauty in light of the significant disruption that the group has faced in the past year, including the suspension from trading of the company’s shares and an independent investigation, in each case as a result of historical issues in the business.”
Revolution Beauty’s shares were suspended last September as the retailer was unable to convince its auditors to sign off on its books for the previous financial year.
A report a few months later revealed that the business had sold nearly £10 million worth of product just before the end of the financial year, which should not have been counted towards its revenue.
It was one of a series of issues discovered when investigators combed through Revolution’s accounts.
It was not until May this year that the business was finally able to publish its full-year results for the year ending February 2022. Shares resumed trading shortly afterwards.
Those shares rose by 4% on Tuesday morning after the deal with Boohoo was announced.