- Revolution Beauty CEO Bob Holt to step down in compromise agreement with Boohoo
- Terms of the agreement still unclear, including timing of Holt’s resignation
- Boohoo demands clarification from Revolution and considers additional board changes
Bob Holt, Revolution’s leader since November, will resign if Revolution and Boohoo find a deal in the next few days.
In a settlement with online apparel store Boohoo, Revolution Beauty’s CEO would retire.
Bob Holt would step down as the company’s CEO – weeks after he was expelled by Revolution shareholders at the company’s annual meeting, only to be reappointed hours later.
It was unknown whether he would resign immediately or when a replacement was appointed.
The beauty goods retailer’s peace accord with Boohoo, which owns 26.6% of Revolution, would depend on Mr. Holt’s head.
Tuesday morning, it was unclear about the other terms of the arrangement.
Mr. Holt has been Revolution’s chief executive officer for only eight months, having been thrust into the position amid an accounting scandal that led to the suspension of the company’s stock.
In an announcement to the stock exchange on Monday, Revolution disclosed that Boohoo had requested an extraordinary general meeting (EGM) with resolutions including the termination of Mr. Holt as a director.
“The board thinks Boohoo will compromise soon,” the statement continued.
The General Meeting may be avoided if the board could compromise.
Boohoo was drafting a letter to the AIM regulatory authorities, demanding that Revolution clarify a previous stock exchange announcement that the online apparel retailer had impeded efforts to finalize its accounts.
Boohoo also desires assurances that voting decisions at the upcoming Revolution Beauty EGM will be upheld and not later reversed.
According to sources, Boohoo is contemplating calling a second extraordinary general meeting in the coming days to remove additional Revolution board members and appoint more independent board members.
Boohoo claims Revolution violated corporate governance standards by rehiring three executives. Immediately after their dismissal at the company’s annual meeting last month.
It claimed Revolution’s board was greedy for granting restored directors millions of pounds in share options.
Revolution denies the charges, saying the three had to be reappointed to resume share trading.
