Beauty brand Revolution set to raise capital by 15 million and welcomes back its founding member

Revolution Beauty Announces Restructuring Plan and Return of Co-Founders

In a recent announcement, Revolution Beauty, the popular cosmetics brand, has unveiled a restructuring plan aimed at re-establishing its original formula for success. The plan, spearheaded by co-founder Tom Allsworth, focuses on trend-oriented innovation and a product-based strategy.

The restructuring comes in response to a challenging financial year, with sales for the first three months dropping by 29% year-on-year and the adjusted net result for the year recording losses of £5.5 million (€6.3 million). Moreover, the decline in business has continued in the first quarter of the current financial year, even accelerating.

In an effort to turn things around, Revolution Beauty is seeking a potential buyer for the business and is planning a capital increase of up to €15 million. However, the company has confirmed that it has received no offers beneficial to the company, causing them to close the possibility of selling.

To aid in the restructuring efforts, Adam Minto, the other co-founder of Revolution Beauty, will return to the company on a consultancy basis. This move follows the decision to abandon the sale process and reinstated its founders, with Tom Allsworth officially becoming the new CEO, and the announcement expected to be made official in the coming days.

The financial struggles of Revolution Beauty have been evident, with net debt, excluding leases, reaching £26.2 million (€30.2 million) by the end of the year. Despite these challenges, the company closed the year with sales of £142.6 million (€164.7 million), marking a drop of up to 25.5%. A further drop of 25% is expected for the first half of the year.

Previously, Frasers Group was considered as a potential buyer for Revolution Beauty. However, with the return of its founders and the implementation of a new plan, the company is looking forward to restoring its growth and establishing a clear roadmap towards long-term value creation.

Beauty brand Revolution set to raise capital by 15 million and welcomes back its founding member