- Tom Allsworth joins as CEO with Adam Minto as consultant despite legal spat
- Cosmetics firm forced to abandon its sale after no acceptable bids
- It wants to raise £15m from investors to bankroll a business reset
The co-founders of embattled cosmetics retailer Revolution Beauty will return to spearhead a turnaround of the business after it was forced to abandon its sale.
Tom Allsworth will return as chief executive of the group, which is now seeking a major fundraise to pay its debts, provide ‘liquidity headroom’ and help bankroll a planned ‘reset’ of the business.
But Revolution Beauty’s workforce faces significant job cuts as Allsworth and cofounder Adam Minto attempt to slash costs.
The group, currently valued at just over £11million, is now hoping to raise £15million from investors after it failed to secure an acceptable takeover offer.
Revolution Beauty launched a formal sale process in May after years of disappointing sales, disputes with shareholders and a costly legal settlement with co-founder Minto – who returns to the business in a ‘consultancy role’.
The cosmetics firm has also seen the clearance of discontinued stock weigh heavily on its bottom line.
Cofounders Adam Minto (left) and Tom Allsworth (right) are tasked with righting the ship
Revolution Beauty told shareholders on Friday it had not ‘received a proposal that would lead to an offer’ that was ‘recommendable by the board’, and the continuation of the sale process would not ‘deliver an outcome that would satisfactorily meet the interests of all stakeholders’.
Frasers was revealed to be among interested bidders but the UK retail giant announced in June it did not intend to make an offer.
Revolution Beauty wants to raise nearly £9million from its top investors through an offering of around 300million ordinary shares at 3.5p each – a discount of around 14.2 per cent to its mid-market price on Thursday.
It will run a separate retail offer to raise up to approximately £1.5million by issuing up to 50million new ordinary shares at an issue price of 3p.
Revolution Beauty said the proceeds of the fundraise would be ‘used to reduce debt, provide working capital, pay fees and provide a basis for the business to return to growth’.
The group said a business reset would focus on three key strategic pillars: product development and pricing, efficiency, and optimisation of marketing spend.
‘Tom, assisted by Adam and the company’s existing management, will lead the implementation of a re-balanced plan to restore growth and set a clear path to long-term value creation,’ it added.
This will involve seeking an addition £7.5million of annual staff cost savings by the 2027 financial year, with a ‘material reduction of headcount across the group’s geographies and business functions’.
It came as Revolution Beauty revealed a further deterioration of performance, with net sales plummeting 29 per cent year-on-year so far in 2025.
Revolution Beauty has plunged to a £16.8million statutory loss before tax, compared to a £11.4million profit last year.
Chair Iain McDonald said: ‘Revolution Beauty is a great brand, but the business has lost its way. We are confident that 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.’
Revolution Beauty shares were up 10.4 per cent to 3.86p in early trading. They are down by around 82 per cent over the last year and have lost almost 98 per cent of their value since their July 2021 IPO when it listed at 160p.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .