Revolution Beauty brings back founders as part of brand's ‘reset’
Revolution Beauty has brought back its former founders to “reset” the business after failing to secure a suitable buyer and grappling with tumbling sales.
Co-founders Adam Minto and Tom Allsworth will return to the beauty brand which its chairman said has “lost its way”.
Revolution said it had not received any suitable offers since launching a sale process earlier this year, and it was therefore no longer looking for a buyer.
The move comes after Frasers Group, owned by British businessman Mike Ashley, said it did not plan on making an offer after previously exploring a possible bid.
Revolution, which sells make-up and cosmetics online and through concessions, instead announced plans on Friday to raise about £15m by issuing new shares.
This will see Mr Allsworth return as the company’s chief executive to lead it through the turnaround, while Mr Minto will take on a consultancy role.
The co-founders intend to “reset” the business and will be carrying out a “new and refreshed strategy for Revolution Beauty, with a view to returning it to long-term profitability”, it told investors.
This will partly involve making further cost savings, which will include cutting staff to free up an extra £7.5m by 2027.