Fashion retailer Boohoo raises stake in Revolution Beauty

A woman poses with a smartphone showing the Boohoo app in front of the Boohoo logo on display in this illustration taken September 30, 2020. REUTERS/Dado Ruvic/Illustration//File Photo
  • Interim chief operating officer Bob Holt named CEO
  • Boohoo becomes largest shareholder in company
  • Accounting enquiry continues

Nov 28 (Reuters) - British makeup group Revolution Beauty (REVB.L) on Monday said online fashion retailer Boohoo (BOOH.L) had become its largest shareholder after earlier naming company insider Bob Holt as its new chief executive.

Boohoo, in a statement confirmed it has raised it strategic investment in Revolution Beauty to about 26%.

Earlier on Monday, Revolution Beauty said Holt had taken over as CEO. His predecessor Adam Minto stepped down less than three weeks ago following an independent accounting enquiry.

Trading in Revolution Beauty's shares was suspended on Sept. 1 after the company missed releasing final results for the year ended Feb. 28 due to accounting issues that prompted the group's auditor to order a probe in August.

Holt, 68, who has been the company's interim chief operating officer since Oct. 14, previously held top positions in housing energy services group SureServe Group (SURS.L) and housing and social care provider Mears Group (MERG.L).

Former chief Minto, who left the company on Nov.9, initially stepped away from the day-to-day management of the company along with executive chairman Tom Allsworth in October as the company further delayed filing final results for year ended Feb.28.

Minto at the time said his temporary absence was to help the accounting enquiry.

Revolution Beauty said the investigation continued and no conclusion had been drawn.

The increase in stake by Boohoo makes it the single largest shareholder in Revolution Beauty ahead of Minto and Allsworth

Last week, asset manager Jupiter Fund Management (JUP.L), which held 8.43% in the company, disposed of its stake in the group.

A regulatory filing by the makeup group on Monday showed that Boohoo, which previously had an about 13% stake in Revolution Beauty, increased its stake last Thursday and Friday.

Reporting by Sinchita Mitra in Bengaluru; Editing by Saumyadeb Chakrabarty and Barbara Lewis

Our Standards: The Thomson Reuters Trust Principles.