Revolution Beauty has appointed a new chief executive after his predecessor quit two months ago when the online cosmetics retailer revealed an investigation into its accounts.
The UK retailer on Monday said it had appointed Bob Holt to replace co-founder Adam Minto, who departed the role in September when auditors highlighted “serious concerns” about the group’s accounts.
Minto’s departure was “a result of the events since IPO and the transition from a private company to a public company”, the cosmetics and skincare group’s board said at the time.
Holt, 68, is a veteran in the City of London, having served on multiple boards over more than three decades. He brought Mears Group, the housing and social care provider, to the market in 1996.
“The board believed he is the right person to drive the business forward,” Revolution said of Holt, who joined as interim chief operating officer in October and has since been running the company day to day. Revolution said Holt did not own shares in the company.
“I believe there is a huge opportunity for the business as it moves ahead and I am confident that, together with the team, we will drive the business forward,” Holt said of Revolution.
Established in 2014, Revolution was one of the largest IPOs on London’s junior market in 2021, chalking up a valuation of almost £500mn on the back of consumers’ shift to online shopping during the Covid-19 pandemic.
The group sells beauty products directly online as well as through collaborations with chains such as Superdrug and Boots in the UK and Ulta in the US.
However, Revolution has since struggled to sustain this growth and its shares subsequently lost most of their value before they were suspended in September after the group failed to file audited accounts on time.
The company has said that auditors BDO had refused to sign off its accounts for the year to February 2022 because of “serious concerns” that included its “ability to provide sufficient and accurate audit evidence” and “the validity of certain commercial arrangements entered into by the company”.
Macfarlanes and Forensic Risk Alliance are carrying out an independent investigation, which Revolution on Monday said had yet to draw any conclusions. “An update will be released to the market in due course,” the company said.