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Revolution Beauty's annual general meeting witnessed three senior board members being laid off, a decision made by their largest investor, Boohoo. The fashion retailer voted for the chairman, CEO, and CFO to be relieved of their positions as of June 27, 2023.
However, within a few hours, the board member was hired back by the one remaining director, Jeremy Schwartz. Boohoo was quick to call the rehiring an abuse of process, accusing the beauty brand's board of not keeping the best interests of shareholders in mind.
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The fast fashion retailer fired the three board members because they wanted to bring in two of their own employees to the beauty brand's board. With a 26.6% stake, Boohoo is the largest investor in Revolution Beauty, which allows it to make major decisions like this single-handedly.
The beauty brand reasoned out the rehiring of the three board members, stating that the change would be counterproductive to the brand. Retaining the current board members will further enhance the share value, which is already on the upswing and went up by 29% on a single day recently.
Revolution Beauty reported a whopping 60% boost in sales during the ongoing leadership battle
Amidst the leadership clash, the beauty brand reported a 60% sales boost, with the brand's business soaring to new heights in the first quarter of 2023. They reported a major hike in earnings, which contrasts with the massive loss the beauty brand had to endure the previous year.
Revolution Beauty stated that the increase in profits goes to show the growth in the quality of their products, giving credit to their leadership team. Boohoo stated that a change in leadership was needed to change the focus of the business to make it more growth-oriented, to which the beauty brand's CEO Robert Holt had to say:
"The company hopes that shareholders are reassured that the current board is similarly minded and that growth is being delivered without one shareholder taking control of the board at the expense of the interests of other shareholders."
The management of the previous leadership team led to the losses incurred in 2022, which stemmed from accounting issues. The beauty brand is yet to stabilize, as they are still dealing with the results of the investigation into the failure of the management of the business.
Revolution Beauty's chairman and CEO purchase shares in the company to strengthen their positions even further
It was recently revealed that Revolution Beauty's CEO and chairman bought shares in the company. The CEO of the beauty brand, Robert Holt, has purchased one million shares, accounting for 0.3% of the total share capital. This would mark Holt's very first stake in the beauty brand.
The chairman of the brand, Derek Zissman, has purchased 100,000 shares, which accounts for a total of 0.04% of the share capital when his previous 130,000 shares are added to it. This move not only strengthens their position on the board but also goes to show their commitment to the betterment of Revolution Beauty.
