Revolution Beauty abandons sale and reinstates founders in turnaround effort

Revolution Beauty has abandoned efforts to sell the business, announced new cost-cutting measures, and reinstated its co-founders to attempt a turnaround after years of financial instability.

The London-listed cosmetics group confirmed that Tom Allsworth will return as chief executive, while Adam Minto, who resigned in 2022 following an accounting scandal, will take on a consultancy role.

“Revolution Beauty is a great brand, but the business has lost its way,” says chairman Iain McDonald. “With a return to the founder-led management team who originally scaled the brand, there is a clear path back to growth and long-term value creation.”

Moreover, the company announced at the end of last week that it had successfully raised £15 million (US$20.29 million) by selling new shares to its largest investors, including the co-founders and Debenhams Group.

On the same day, Revolution opened a short retail offer allowing everyday shareholders to invest up to another £1.5 million (US$2.03 million). Both elements require shareholder approval at a meeting in September before the new shares can start trading on 15 September.

Notably, news of the shakeup has already lifted the company’s share price by more than 10%.

Roadmap to recovery

Revolution had been looking for a buyer since May, but said no acceptable offers came through. UK retail giant Frasers Group, owned by Mike Ashley, had previously explored a takeover but ultimately declined. Private equity firm True was also reported to have made a bid that was rejected.

Allsworth, who co-founded Revolution in 2014, will now lead the company as CEO. Minto, who left in 2022, will act as a consultant two days a week, earning £160,000 (US$216,000) per year.

The company told investors the leadership return marks the start of a “new and refreshed strategy for Revolution Beauty, with a view to returning it to long-term profitability.”

The company will redirect its focus back to innovating fast, trend-driven product launches. Image Credit: Revolution Beauty London.This strategy includes restructuring operations and trimming marketing spend. The company will redirect its focus back to innovating fast, trend-driven product launches, as this is the approach that once made Revolution popular with young consumers.

The reset will also involve staff reductions, with a goal of saving £7.5 million (US$10.13 million) annually by 2027.

Financial losses mount

The announcement comes after another weak set of results. Revolution’s sales dropped 25.5% to £142.6 million (US$192.51 million) in fiscal 2025. The company swung to a pre-tax loss of £16.8 million (US$22.68 million), compared with a profit of £11.4 million (US$15.39 million) the year before.

The downturn has continued in 2025. Sales in the first quarter fell 29% compared to last year, and the company warned it expects another 25% decline in the first half.

Profit margins also fell, partly because the company has cleared discontinued products at lower prices.

To rebuild, Revolution said it will bring back some profitable products it had cut, relaunch its low-cost Relove line with new retailers, and open an outlet channel to sell discounted stock.

Controversial comeback

The founders’ return comes nearly three years after both men stepped down amid a governance crisis. Minto and Allsworth resigned in 2022 after auditors raised accounting concerns and refused to sign off on the company’s accounts. This led to a suspension of trading in Revolution’s shares and a major investigation.

The probe found that Minto and Allsworth had made around £1 million (US$1.35 million) in personal loans to distributors and an employee, without adequately informing the board.

Revolution launched legal action against Minto but later settled, with him agreeing to repay £2.9 million (US$3.92 million) over six years.

News of the shakeup lifted the company’s share price by 10.4%.Despite the controversy, analysts note that the two were the ones who grew Revolution into a global player by leveraging fast beauty trends, online influencers, and retail partnerships.

Retail analyst Jonathan De Mello commented that while their return is surprising, “they are the people that essentially scaled up the business and made it the success it was.”

Cautious optimism

Revolution’s reset comes with no guarantees. The company is still weighed down by debt, sales continue to decline, and competition in the mass beauty market remains fierce. Even so, the board maintains that fresh funding and the return of its founders will provide a path to recovery.

“The focus will be on returning to what made Revolution successful in the first place — fast product innovation and a strong product-led strategy,” chairman McDonald says.

At the same time, co-founder Adam Minto is pursuing a separate project: a Gen Z-focused beauty brand called Trouble Maker. His dual commitments could raise questions about how he will balance the new consultancy role at Revolution with building his latest venture.