Founders of revolution beauty fall through sales

Troubled fashion brand revolution beauty has brought back its former owners to “reset” the business after failing to secure a buyer.

Co-founders Adam Minto and Tom Elsworth resigned after a series of accounting issues, but on Friday the company said the pair would return to deal with their plmeting sales.

Revolution, which sells makeup and cosmetics online and through concessions, stated that he had not received any appropriate proposal since he started the sales process earlier this year and as a result, it was no longer looking for a buyer.

Frazers Group, owned by businessman Mike Ashley, said it is not a plan to make a proposal after the discovery of a possible bid.

The Fraser Group is the owner of a stake in Bohu, in turn, the owner of a stake in the revolution beauty – meaning that the Frazers Group is already a small part of the revolution beauty.

As part of its attempt to divert low -cost makeup firm, Kranti Beauty said it would look at £ 15M by issuing new shares.

The cosmetics allegedly rejected an acquisition dialect from the specialist private equity firm earlier this month.

Chairman Ian McDonald said that it was “a great brand, but the business has lost its way”.

While the revolution beauty sells its products through online fashion websites through retailers such as superdriges and boots and ASOS, it also has a strong appearance on social media and worked with the affected and love island contestants in the past.

Retail analyst Jonathan de Melo said the brand was “in vogue” a few years ago, but the increase in competition and rising costs, with consumers on tight budget, meant that its popularity decreased.

However, a change of business will also have to win celebrity endorsements and cooperations to “win back those consumers back”, he said.

Mr. Allwsh will return as the Chief Executive of the Company, while Mr. Minto will play a counseling role with a salary of £ 160,000 per year.

The co-founder “a new and fresh strategy for” revolution beauty, making a new and fresh strategy with a approach to return to long-term profitability, said the firm said.

Further costs are expected to save further, which will include cutting employees to free the additional £ 7.5M by 2027.

Mr. Minto left the post as Chief Executive in 2022 After accounting issues, 2022 results of the revolution were delayed and its shares were suspended.

Mr. Minto and Mr. Allswarth also gave personal loans to an employee and distributors who were not told to the board.

Mr. Minto agreed to pay around £ 3M revolution to settle the issues.

The news of the pair returning to the company was “a surprising thing”, Mr. de Melo said.

“Are those who essentially enhanced the business and gave it success.”

“They have a track record for the manufacture of the brand.”

On Friday, the company revealed a 25.5% decline in sales in the last financial year, with a total of £ 142.6m in 12 months to 28 February.

This reported a pre-tax loss of £ 16.8m from the previous year’s £ 11.4m profit.

Mr. McDonald’s said: “We are confident that with the return of the founder -led management team, who originally scored the brand, is a clear way for development and long -term value construction.”

After the announcement, the price of revolution beauty increased by 10.4%.