Revolution Beauty founder Adam Minto is said to be in talks to repay close to £3m to settle allegations that he breached his fiduciary duties to the cosmetics retailer.
Minto’s co-founder, Tom Allsworth, is also in discussions with business to amend the timetable for deferred payments owed to him for his stake in Medichem, a haircare and skincare manufacturer.
In a statement on the London Stock Exchange, Revolution Beauty said it “remains in negotiation on both these issues.”
“There is no guarantee that agreements will be reached. Should agreements be reached, they would likely be treated as related party transactions and an appropriate announcement made at that time.”
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Revolution Beauty hopes the dual settlement will draw a line under a bitter dispute which arose during the year after it listed in London with a valuation of nearly £500m.
A host of governance and operational crises over the past year have eaten away at a significant chunk of the retailer’s value, leaving it with a market capitalisation of just £81m.
Back in 2019 it was the fastest-growing beauty brand, shooting to popularity thanks to its ‘fast beauty’ model of pouncing on makeup trends and creating quick-to-market, cheap products.
The brand, which is stocked in retailers including Superdrug, Boots and even Boohoo, was flying and floated on the stock market with a valuation of £495m in 2021.
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