Revolution Beauty said on Tuesday CEO Bob Holt and Chairman Derek Zissman had agreed to step down from the British makeup company as part of a settlement deal with top shareholder Boohoo over board changes.
Online fashion retailer Boohoo, which raised its stake in Revolution to over 26 percent last year, sought board changes at the company last month, calling for better management after questions over its 2022 accounts.
Boohoo wanted to see Holt, Zissman and CFO Elizabeth Lake removed from the board and replaced with new directors Alistair McGeorge, Neil Catto and others.
McGeorge is Boohoo’s deputy chairman, while Catto is an executive director at Boohoo and its former finance chief.
On Tuesday, Revolution Beauty said McGeorge had been appointed executive chairman and Catto a non-executive director, but that CFO Elizabeth Lake would remain in her role.
Holt did not immediately respond to a message seeking comment on LinkedIn. Reuters was not able to contact Zissman.
Holt, who was appointed CEO late last year, would stay on with the business as interim CEO till August, the company added.
Holt was previously the company’s interim chief operating officer. He took on the CEO role after former boss Adam Minto stepped down amid an independent accounting probe.
Revolution Beauty’s auditors began a probe in August after raising concerns over its 2022 accounts, prompting a suspension in the trading of its shares on Sept. 1.
Shares in the London-listed company, which resumed trading on Jun. 28, jumped 10 percent in Tuesday morning trade.
“The new directors appointed at Boohoo’s request are looking forward to supporting Elizabeth with her ongoing hard work on restoring the company to sound financial health,” Revolution said in a statement.
By Eva Mathews; Editors: Rashmi Aich and Emma Rumney.
Learn more:
Revolution Beauty Alleges Former Boss Minto Breached Duties
The company alleged the executive breached fiduciary and other duties and said it was looking to recover “material sums” in related costs.
