In a striking turn of events, Revolution Beauty Group PLC, a prominent name in the cosmetics industry, has settled a high-stakes legal drama with its former chair, Tom Allsworth. This resolution marks the end of a tumultuous chapter in the company’s acquisition saga of Medichem Manufacturing, a pharmaceutical firm also founded by Allsworth.
Revolution Beauty Settles With Former Chair: A Financial Tightrope Walk
Under this gripping settlement, Revolution Beauty has agreed to shoulder a £270,000 ($338,000) bill, covering the legal expenses Allsworth accrued amid claims connected to Medichem. This move comes without any party admitting liability, adding a layer of mystery to the entire episode.
Revolution Beauty Settles With Former Chair : A Strategic Acquisition Turned Sour
The plot thickens with Revolution Beauty’s October 2021 acquisition of Medichem for a hefty £27.5 million. However, an independent investigation by Macfarlanes in January revealed discrepancies in Medichem’s valuation pre-acquisition, neglecting the stock-holding of Revolution Beauty’s products.
A Revised Repayment Plan: Unveiling New Terms
Adding to the intrigue, Revolution Beauty, listed on the London Stock Exchange’s alternative investment market, has now revised its payment plan to Allsworth. Originally set to disburse up to £5.13 million annually from 2025 to 2028, the company will now pay £600,000 yearly.
A Shuffling of the Deck: Leadership Changes Amidst Turmoil
In a twist of fate, Allsworth will remain part of the management team but steps back from the director’s chair. His resignation in June followed the Macfarlanes investigation, which unearthed accounting irregularities and undisclosed personal loans by Allsworth and former CEO Adam Minto to an employee and distributors.
Auditor’s Alarm: Financial Discrepancies and Suspended Shares
BDO LLP, Revolution Beauty’s auditor, raised the alarm in September 2022 over financial irregularities, leading to a suspension of the company’s shares. This move was a direct consequence of the company’s inability to publish its financial results.
Revolution Beauty Settles With Former Chair : The Minto Conundrum
The corporate thriller continues as Revolution Beauty seeks to settle with ex-CEO Minto over delayed audits and the subsequent trading suspension. Minto’s departure in November 2022 adds another layer to this complex narrative.
CFO Shuffle: A New Financial Navigator
In a final twist, Elizabeth Lake steps down as CFO, making way for Neil Catto, ex-CFO of Boohoo Group PLC, to take the helm in January. This change is pivotal as Boohoo, holding a significant stake in Revolution, pushes for board changes post the Macfarlanes revelations.
