Revolution Magnificence founder quits amid probe of retailer’s accounts

The founder and chief government of on-line retailer Revolution Magnificence has stepped down completely after the group revealed an investigation of its accounts two months in the past and slashed forecasts.

Adam Minto has resigned with rapid impact, having final month stepped away from “day-to-day administration” throughout the investigation, the board of the cosmetics and skincare maker stated on Wednesday.

His departure was “a results of the occasions since IPO and the transition from a personal firm to a public firm,” the board stated. Minto couldn’t be reached for remark.

Revolution was one of many largest preliminary public choices on London’s junior market in 2021. However its first 12 months as a listed firm has been catastrophic. Its shares shed 87 per cent of their worth earlier than they had been suspended in September after it did not file audited accounts on time.

The corporate subsequently revealed that auditors BDO had refused to log out its accounts due to “severe considerations”. These included points with its “capacity to offer enough and correct audit proof” and “the validity of sure industrial preparations entered into by the corporate”.

Revolution appointed Macfarlanes and Forensic Threat Alliance to hold out an impartial investigation, which continues to be ongoing. It stated on Wednesday that “no conclusions have been drawn”.

Govt chair Tom Allsworth, who co-founded the group, additionally stepped apart quickly from his duties final month. Metropolis veteran Bob Holt, who joined as interim chief working officer in October, is working the corporate each day.

Minto and Allsworth every bought about £15.6mn of shares on the IPO in 2021.

Like a number of different corporations that listed in 2021, Revolution — which was valued at virtually £500mn at IPO — benefited from an increase in on-line procuring throughout the pandemic however then struggled to maintain this development.

Made.com, the web furnishings retailer valued at virtually £775mn at its London IPO final 12 months, went into administration on Wednesday.

Revolution was launched in 2014 and sells magnificence merchandise instantly on-line in addition to via retailers corresponding to Boots and Superdrug within the UK and Ulta Magnificence within the US.

Minto beforehand stated he spent three many years designing and creating make-up, fragrances and skincare for a number of the world’s largest magnificence manufacturers earlier than founding Revolution.

In March this 12 months he instructed an interviewer at TheIndustry.magnificence that Revolution was “ideally positioned to capitalise on altering client traits . . . and we’re assured in our long-term sustainable development prospects”.