Revolution Beauty has appointed accounting firm MHA as its new auditor.
This comes after BDO, who had been the company’s auditor since 2019, resigned by “mutual agreement.”
MHA will now oversee the audit of the beleaguered beauty brand for the financial year ending February 28, 2024.
Revolution Beauty said in a statement: “BDO has confirmed that there are no circumstances in which it considers it necessary to inform our members or creditors in connection with the resignation.”
BDO was overseeing an investigation into Revolution Beauty’s accounts after the beauty industry failed to publish its final financial results for the year ended February 28, 2022.
The report found that co-founders Adam Minto and Tom Allsworth had made personal loans of around £1 million to distributors and senior employees.
The accounting firm said at the time that none of these arrangements were disclosed to the board in a timely manner.
BDO’s investigation also found significant problems with Revolution Beauty’s acquisition of pharmaceutical company Medichem.
Mr. Minto and Mr. Allsworth resigned shortly after the investigation began, and former interim chief operating officer Bob Holt and chief financial officer Elizabeth Lake took over the reins.
Lauren Brindley was appointed group CEO in September 2023, following Holt’s resignation following the settlement agreement with Boohoo.
Revolution Beauty said it plans to reach sales of £1bn by 2030 as part of a new turnaround strategy, despite years of legal problems and financial difficulties.
Dubbed “Reigniting the Revolution,” the company aims to get its business back on track.
The fast beauty retailer aims to become one of the world’s top five beauty retailers, adding that it will focus on three core areas to achieve “long-term profitable growth.”
Revolution Beauty also recently reached a settlement agreement with co-founder Minto.
Mint agreed a settlement of £2.9 million, to be paid in six annual installments of £483,333.
The brand’s board of directors said at the time that the move was a “fair settlement for the company.”
