Boohoo doubles stake in struggling makeup firm Revolution Beauty fuelling speculation it is planning a takeover
Boohoo has doubled its stake in Revolution Beauty – fuelling speculation it is planning a takeover of the beleaguered makeup firm.
The online fast fashion retailer, which in recent years has bought Debenhams, Dorothy Perkins and Pretty Little Thing, now owns 26 per cent of Revolution.
Boohoo said it intends to be a ‘supportive’ partner but would not comment on any takeover.
Takeover talk: Boohoo, which in recent years has bought Debenhams, Dorothy Perkins and Pretty Little Thing, has doubled its stake in Revolution Beauty
But veteran retail analyst Richard Hyman said: ‘You don’t buy 26 per cent of something just for the fun of it.’
Boohoo built up a 13 per cent stake in Revolution in August and sells its products online. It is now Revolution’s biggest shareholder above founders Adam Minto and Tom Allsworth, who each own around 16 per cent.
Last month Minto stepped back from the business amid a probe into its accounts. Revolution was suspended from the London Stock Exchange in September for missing a deadline to publish its results.
An investigation is ongoing after its auditor, BDO, raised ‘serious concerns’ over its inability to publish an audit report for the financial year.