More trouble for Revolution Beauty? CEO resigns amid accounting probe
11 Nov 2022 --- Revolution Beauty founder and CEO Adam Minto has resigned with immediate effect, the company’s board announced. This follows Minto’s departure from day-to-day business management in October along with executive chairman and co-founder, Tom Allsworth, amid an ongoing accounting investigation.
Trading in Revolution Beauty shares was suspended in September after the company’s auditors, BDO, “identified a number of serious concerns” that arose during the FY22 audit. External advisers – Forensic Risk Alliance, Macfarlanes – are carrying out an independent investigation per BDO recommendation.
Minto’s departure was “a result of the events since IPO and the transition from a private company to a public company,” the board said.
PersonalCareInsights reached out to Revolution Beauty for comments but has yet to receive a response from the company.
Meanwhile, Victoria Leporiere, senior PR & communications manager at Macfarlanes LLP, tells us: “It is our general firm policy not to comment on ongoing client matters, so I’m afraid this isn’t something that we can help with.”
“Unfortunately, we are unable to offer commentary for this story,” adds Leah Albohayre, senior client executive at Forensic Risk Alliance’s representative agency Hudson Sandler.
According to Revolution Beauty’s financials, as at September, the brand had a net debt of £16.1 million (US$18.8M).
Revolution Beauty appointed Macfarlanes and Forensic Risk Alliance to commence an independent investigation into the accounting issues.
Accounting probe background
The British skincare and make-up brand reiterated that the independent investigation is ongoing and no conclusions have been drawn.
While Minto has stated that he will continue to support the investigation through to its conclusion, Bob Holt OBE has been responsible for the day-to-day running of Revolution Beauty since October and remains as interim chief operating officer.
In August, the multi-channel mass beauty company concluded that it was not in a position to be able to release audited results and annual reports for FY22 in accordance with AIM Rule 19, resulting in the suspension of the company’s ordinary shares.
Furthermore, in its September update, the company said the investigation might take several months to complete. It appointed Macfarlanes LLP and Forensic Risk Alliance to commence an independent investigation into the matters raised by BDO apart from any other issues that may become relevant during their review.
The company also formed an investigation committee to lead the process with independent advisers.
“We are taking BDO’s concerns very seriously and will conduct a full and independent investigation. We will keep investors and stakeholders fully updated as the process continues,” shares Zissman, non-executive director and head of the investigations committee.
By Radhika Sikaria
