Revolution Beauty reaches settlement agreement with co-founder
Embattled makeup giant Revolution Beauty has reached a settlement agreement with its co-founder to change terms for the acquisitions of a pharmaceutical company which he owned.
The troubled makeup brand was in discussions with the former executive chairman, Tom Allsworth, to fix the timetable for deferred payments owed to him for his stake in Medichem.
Allsworth, who was booted out of the company back in June following an auditing probe, entered into an agreement for the sale and purchase of the entire issued share capital of Medichem for a total consideration of up to £27.5 million back in October 2021.
As part of the agreement Allsworth would be paid in annual instalments of up to £5.125m between October 2025 and October 2028, with interest accruing on outstanding balances at a rate of 2.5 per cent per annum.
Revolution Beauty said today that both transactions “constituted related party transactions under the AIM Rules”.
He will now be paid a smaller sum of £600k every year on the 31st of October beginning in 2025.
Allsworth will continue in the management team of Revolution Beauty Labs with the title founder and director of Revolution Labs though he will not be a statutory director.
It is one of two settlement agreements Revolution Beauty is trying to reach.
Today the firm said it is still negotiating talks with former boss Adam Minto after it was reported he may have to pay £3m to clear allegations that he breached fiduciary duties to the company.
It would draw a line under a host of scandals the company has faced over the last year, including a shareholder revolt and being temporally suspended from the stock exchange.
It was also confirmed this morning that chief financial officer Elizabeth Lake will step down in September and be replaced by former boohoo boss Neil Catto.
Revolution Beauty has been approached for comment.