Revolution Beauty Group PLC on Wednesday announced the resignation of Chief Financial Officer Elizabeth Lake and the resolution of its legal dispute with Tom Allsworth.
Shares in Revolution Beauty were down 9.8% at 32.73 pence in London on Wednesday. However, the stock has quadrupled from 8.25p a year ago.
The London-based cosmetics retailer said that Lake, who joined the company in May 2022 after around three years at Everyman Media Group PLC, has stood down effective immediately but will remain at Revolution Beauty until December 31.
Revolution Beauty said Neil Catto, who has served as a non-executive director since July, will be its new CFO starting January 1.
‘My focus over the past 18 months has been on addressing the well-documented issues the business has faced,’ Lake explained. ‘During that time, we have significantly strengthened the group’s financial position, improved internal controls and implemented a full set of accounting policies that enabled the filing of the group’s financial statements and the resumption in trading of Revolution Beauty’s shares.
‘With the business back to profitability and well placed for sustainable profitable growth, it is the right time for me to explore new opportunities.’
Incoming CFO Catto previously spent 11 years as CFO at Revolution Beauty’s major shareholder boohoo Group PLC.
The two companies were until recently locked in a lengthy and bitter dispute, which saw online fashion retailer boohoo attempting to force the exit of multiple key Revolution Beauty board members. In July, both parties reached a compromise that included the resignation of co-founders Adam Minto and Tom Allsworth, who were Revolution’s chief executive officer and executive chair at the time.
On Wednesday, Revolution Beauty also announced a settlement with Allsworth. It said both parties on Tuesday agreed to the full and final settlement of claims, with neither side admitting or accepting liability.
Revolution Beauty has agreed to pay £270,000 to Allsworth regarding historical legal fees, and both parties have agreed a revised payment schedule for outstanding consideration due to Allsworth in exchange for Medichem Manufacturing Ltd. Revolution acquired the hair and skincare company from Allsworth in October 2021 for total consideration of up to £27.5 million.
Additionally, Revolution Beauty said it continues to seek a settlement agreement with former CEO Minto. It had announced in late June that it intended to commence legal proceedings against Minto regarding his alleged breaches of fiduciary responsibilities.
In late November, Sky News reported that discussions were ongoing regarding a potential £3 million payment from Minto to avoid a potential lawsuit.
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