Revolution Beauty has reached a settlement agreement with co-founder and former CEO Adam Minto.
Mint agreed a settlement of £2.9 million, to be paid in six annual installments of £483,333.
Revolution Beauty said that if the settlement installments are not paid by the due date, interest will be charged at an annual rate of 8%.
The brand’s board said this was a “fair settlement for the company” after considering its options and the legal advice it had received.
Revolution Beauty originally filed a lawsuit against Mint in 2023, alleging that Mint breached its financial obligations to the company.
The company failed to file its final financial results for fiscal year 2022, and as a result, Revolution Beauty’s shares were suspended on September 1.
Alistair McGeorge, Non-Executive Chairman of Revolution Beauty, said: “We are very pleased to have reached an agreement with Adam.”
Co-founder Tom Allsworth had also previously been in talks with Revolution Beauty to reach an agreement to amend the terms of its acquisition of Medichem.
The brand announced it has reached a revised payment schedule with Allsworth for December 2023.
The pharmaceutical company was acquired on October 26, 2021 and was wholly owned by Allsworth.
“This, combined with the revised payment schedule agreed to in December 2023 for the Medichem acquisition, means we can now focus on the future,” McGeorge added.
This comes after Revolution Beauty received a pre-action letter from former investor Chrysalis Investments.
The allegations relate to the acquisition of shares by Chrysalis in July 2021 and the subsequent sale of those shares in late 2022, which reportedly caused their value to decline by 90%.
Revolution Beauty confirmed that it had received a pre-litigation letter from Chrysalis, adding that the company had not initiated any formal legal proceedings.
The beauty brand strongly disputes the allegations, adding that it is working with Chrysalis’ advisors.
What’s going on with Revolution Beauty?
Revolution Beauty was founded in 2014 by Minto Allsworth and Tom Allsworth, but they will step down from their roles in November 2022 following an investigation into the company’s accounts by accounting firm BDO. did.
Following the departures of Minto and Allsworth, the brand was placed under the direction of former interim chief operating officer Bolt Holt and chief financial officer Elizabeth Lake.
Boohoo, the beauty brand’s largest shareholder, also staged a coup in June 2023, overthrowing new management.
At the time, the board said it was not delivering shareholder value.
Revolution Beauty finally ended its public battle with the fast-fashion retailer in July with a settlement agreement that included the resignations of Holt and chairman Derek Zissman.
Lauren Brindley will then be appointed Group CEO in September 2023, overseeing the beauty brand’s global operations and its strategic growth.
