Summary
Revolution Beauty, a cosmetics company, has decided to bring back its founders to help improve the business after a planned sale did not happen. The company aims to raise funds and cut costs to return to profitability, following a drop in sales and financial losses.
Key Facts
- Revolution Beauty did not find a buyer after starting a sale process earlier this year.
- Founders Adam Minto and Tom Allsworth are returning to the company to help "reset" operations.
- The company plans to raise about £15m by issuing new shares.
- The founders aim to develop a strategy to make the company profitable in the long term.
- Revolution Beauty experienced a 25.5% drop in sales over the last financial year.
- The company reported a pre-tax loss of £16.8m, compared to a profit of £11.4m the previous year.
- Cost-cutting measures, including staff reductions, are expected to save £7.5m by 2027.
- Allegations were made about undisclosed personal loans by the founders, leading to financial settlements.
