Revolution Beauty has entered a manufacturing agreement with two brands in which former founder and CEO Adam Minto is a stakeholder.
The US make-up brand’s subsidiary, Revolution Labs, will create and supply beauty and personal care products for Carbon Theory and Delhicious.
The manufacturing deal is expected to generate revenues and profits of £530,000 and £50,000 respectively.
Minto is an investor in both businesses and also continues to hold a 15.34% stake in Revolution Beauty.
Revolution Beauty consulted with its advisor Panmure Liberum Capital to ensure the terms of the agreement were “fair”, as Minto is considered a “related party” under AIM rules.
It follows over two years of legal battles and shareholder revolts for the beauty brand.
Revolution Beauty failed to file its final results for the 2022 financial year, resulting in its shares being suspended on 1 September.
Co-founders Minto and Tom Allsworth stepped down from their roles in November 2022 amid an accounting probe by accountancy firm BDO into the company.
The brand then fell under the leadership of former Interim Chief Operating Officer Bob Holt and CFO Elizabeth Lake, following Minto and Allsworth’s resignation.
Boohoo, the beauty brand's largest shareholder, also staged a coup in June 2023 to overthrow the new leadership team.
Legal action was launched by Revolution Beauty against Minto in 2023, which claimed that he had breached his financial duties to the company.
The company reached a settlement agreement in February 2024, with Minto agreeing to the settlement sum of £2.9m paid in six annual instalments of £483,333.
Recent operational changes have helped to bolster Revolution Beauty’s recovery strategy, however.
The fast beauty retailer is focused on three core pillars to deliver “long-term profitable growth” to become a top five mass beauty player globally.
Read more:
- Revolution Beauty returns to profit as sales jump in 2024
- Former investor accuses Revolution Beauty of ‘deceit’ and seeks £45.2 million claim
- Revolution Beauty raises full year guidance as recovery plan pays off
- Revolution Beauty auditor BDO resigns after four years
