Revolution Beauty founder Minto in £3m settlement talks

The founder of Revolution Beauty, the London-listed cosmetics group, is in talks to repay almost £3m to settle allegations he breached his fiduciary duties to the company.

Sky News has learned that Adam Minto, who stepped down as CEO just over a year ago, is in advanced negotiations to hand over the million.

Sources said a settlement deal could be announced within weeks, with talks potentially confirmed to the London Stock Exchange as early as Monday.

Minto’s co-founder Tom Allsworth is also in discussions with Revolution Beauty to change the schedule of deferred payments to him for his stake in Medichem, a hair care and skin care maker, the sources added.

Revolution Beauty hopes the double settlement will draw a line under a bitter dispute that erupted over the year after it went public in London at a valuation of almost £500m.

A series of governance and operational crises have destroyed much of the company’s value, leaving it with a market value at Friday’s close of just £81m.

Positioning itself as a mass market beauty range, Revolution is sold through thousands of outlets, including Superdrug stores in the UK.

It built a strong following among younger consumers by creating partnerships with media properties including ITV dating show Love Island.

With just over 400 employees, it has overhauled its entire management team over the past 12 months.

The brand has built a strong following among younger consumers. Image: RB

Minto left in November 2022 after stepping down from day-to-day management the previous month.

Revolution Beauty said his exit was a result of “events since the IPO”.

It was only in June this year that the company revealed that it had initiated legal proceedings against him.

Read more on Sky News:
Fuel prices fall after gas stations get ‘good prod’
Pensioners start receiving £600 winter fuel payment

A claim letter sent to Mr Minto said: “The claim alleges that Mr Minto breached his fiduciary, statutory, contractual and/or tortious obligations to the company.

“Some of the alleged matters contributed to the delay in the review of the group’s FY22 results and to the suspension of the company’s shares from trading on AIM.

“The company seeks to recover significant amounts in connection with the extraordinary costs the company has incurred as a result of the alleged conditions.”

Click to subscribe to The Ian King Business Podcast

This weekend it was unclear whether a payment from Mr Minto of close to £3m would represent a significant part of the “material sums” initially referred to by Revolution Beauty.

The accounting and trading problems that arose after its launch culminated in Boohoo Group, the online fashion group, building a stake in it.

In July, the two companies reached a compromise agreement, which involved the resignation of Revolution Beauty’s chairman and CEO.

Boohoo remains a major shareholder in the company.

On Saturday, a spokesman for Revolution Beauty declined to comment, while Mr Minto could not be reached for comment.

Leave a Reply

Your email address will not be published. Required fields are marked *