- Minto negotiating £3 million
- Allegations of fiduciary breach
- Boohoo acquires stake
The AIM-listed company is in advanced discussions regarding multimillion-pound payments with Adam Minto and former colleague Tom Allsworth.
Nearly £3 million is being negotiated as compensation from the proprietor of the London-listed cosmetics company Revolution Beauty to resolve allegations that he breached his fiduciary duties to the company.
Key Figures in Negotiations
Adam Minto, who resigned as CEO approximately one year ago, is currently engaged in advanced negotiations to transfer a substantial sum of money.
According to sources, a settlement agreement could be declared within weeks. The London Stock Exchange could potentially receive confirmation of the negotiations as early as Monday.
Broader Company Issues
The sources added that Tom Allsworth, co-founder of Mr. Minto, is also in talks with Revolution Beauty to modify the schedule for deferred payments owed to him for his stake in haircare and cosmetics manufacturer Medichem.
Revolution Beauty aspires to the dual resolution to effectively resolve a contentious dispute that emerged in the year following its London listing at an estimated valuation of £500 million.
A sequence of governance and operational crises has significantly diminished the company’s worth. This resulted in a market capitalization of merely £81 million as of Friday’s close.
Revolution, a cosmetic line aimed at the mass market, is distributed via thousands of retailers, including Superdrug locations in the United Kingdom.
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It established a substantial following among the younger demographic through strategic partnerships with media properties, such as the ITV dating program Love Island.
At just over 400 employees, the company has experienced a total leadership upheaval in the previous year.
Legal Challenges and Departure Drama
Mr. Minto departed in November 2022, one month after announcing his withdrawal from daily operations.
Revolution Beauty cited “events that have transpired since the IPO” as the reason for his departure.
The business announced that legal action had been initiated against him in June of this year.
“According to a letter of claim addressed to Mr. Minto, the claimant is alleged to have violated the company’s fiduciary, statutory, contractual, and/or tortious obligations.”
Due to alleged difficulties, the company’s AIM shares were halted and its FY22 audit was postponed.
The company is seeking reimbursement for significant amounts associated with the extraordinary expenses it suffered due to the alleged issues.
Over the weekend, it remained uncertain whether paying approximately £3 million from Mr. Minto would constitute a significant portion of the “material sums” that Revolution Beauty initially alluded to.
An online fashion conglomerate bought a stake in the company after its flotation due to accounting and trading concerns.
The chairman and CEO of Revolution Beauty resigned in July after the two companies negotiated a deal.
Boohoo continues to maintain a significant stake in the organization.
A representative of Revolution Beauty declined to comment, and Mr. Minto could not be reached for comment.
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