Manchester-based online fashion giant Boohoo Group said on Monday it has doubled its stake in Revolution Beauty Group to 26% from 13%, as Revolution promoted interim chief operating officer Bob Holt to chief executive officer.

Boohoo said the investment builds upon an existing relationship under which Revolution Beauty products are sold through Boohoo’s websites, including the digital incarnation of department store Debenhams.

“The investment reflects Boohoo’s belief in the growth potential of Revolution Beauty, and it intends to be a supportive stakeholder and long-term partner,” said Boohoo, which did not say how much it paid for the additional stake.

Revolution Beauty shares have been suspended from trading on AIM since September 1 at 19p per share, down from its 160p initial public offering price in July of last year.

It has a £58.9 million market capitalisation but had been worth near £500 million when it listed.

Boohoo shares rose about 3%.

Earlier on Monday, Revolution Beauty had said Holt’s promotion was effective immediately. It noted that Holt has more than 30 years of experience in senior and executive roles, including energy services firm Sureserve Group PLC and housing & social care provider Mears Group PLC.

“Over the past six weeks I have seen first-hand the quality of people working at Revolution Beauty, the overall popularity of the brand and innovation of products for customers around the world,” Holt said.

Back in October, former CEO Adam Minto stepped away from daily management.

Revolution Beauty said the independent investigation being carried out by Forensic Risk Alliance and Macfarlanes LLP continues, and no conclusions have been drawn.

In September, the company’s auditor BDO LLP said it had a “number of serious concerns” regarding the audit for the 2022 financial year, concluding that it was not able to sign an audit report.

Reporter: Tom Waite

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