Make-up firm blasts ‘self-serving’ Boohoo

The row between Revolution Beauty and Boohoo escalated as the make-up brand attacked its largest shareholder as ‘value-destructive, opportunistic and self-serving’.

Revolution defended its chaotic annual meeting this week, where senior board members were fired, then rehired.

The Kent firm says that had it not acted as it did, its shares – suspended in September – would not have been readmitted to trading on AIM.

‘The board continues to believe that Boohoo’s hostile actions are value-destructive, opportunistic and self-serving, as well as not being in the interests of the company’s shareholders as a whole,’ it said.

The battle between the two retailers boiled over this week after Revolution defied a majority shareholder vote and reinstated chief executive Bob Holt, finance chief Elizabeth Lake and chairman Derek Zissman who were ousted by Boohoo, which led a successful vote against them.

But they were reappointed by independent director Jeremy Schwartz, and bosses were given over 11m shares worth nearly £3m.

‘The response from the stock market and wider stakeholders firmly validates the actions taken following the AGM, which were lawful and entirely consistent with directors’ legal duties,’ Revolution said.

Its shares surged 13.5 per cent, or 3.7p, to 31.2p yesterday.

Boohoo, which holds a 26.6 per cent stake, said: ‘As its largest shareholder, we continue to strongly believe Revolution Beauty needs to be run by an effective and experienced team with directly relevant beauty experience.’

Victoria Scholar, analyst at Interactive Investor, said: ‘This drama is far from over with a long road ahead for the two sides to repair the damaged relationship.’