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Revolution Beauty, a troubled fashion brand known for its work with influencers and Love Island stars, is set to undergo a major overhaul after failing to secure a buyer. The company announced that its former co-founders, Adam Minto and Tom Allsworth, will return to lead the business in an effort to address its declining sales. This decision comes after Revolution Beauty failed to receive any suitable offers during its sale process earlier this year.
Despite Frasers Group, owned by businessman Mike Ashley, previously exploring a possible bid, the company announced that it was no longer seeking a buyer. Frasers Group already owns a stake in Revolution Beauty through its connection with Boohoo, and as part of its restructuring plans, Revolution Beauty is looking to raise approximately £15m by issuing new shares. The cosmetics company recently turned down a takeover bid from private equity firm True.
With the aim to revitalize the brand, Revolution Beauty plans to focus on reigniting celebrity endorsements and collaborations, which were once key to its success. Mr. Allsworth will resume his role as the company’s chief executive, while Mr. Minto will take on a consultancy role with a £160,000 per year salary. The co-founders will work on implementing a new strategy to return Revolution Beauty to profitability, with anticipated cost savings that include staff reductions to free up an additional £7.5m by 2027.
News of Minto and Allsworth’s return to Revolution Beauty came as a surprise to many, considering the past accounting issues and controversies surrounding the company. However, retail analyst Jonathan De Mello reiterated the co-founders’ track record of building the brand and scaling up the business. Despite a 25.5% drop in sales and a pre-tax loss of £16.8m in the last financial year, Revolution Beauty’s share price saw a 10.4% increase following the announcement of the leadership change. The company’s chairman, Iain McDonald, expressed confidence in the return of the founder-led management team, believing it will lead to growth and long-term value creation
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