Revolution Beauty Threatens Founder With Legal Action — Retail Bum

Revolution Beauty may soon pursue legal action against its co-founder Adam Minto for issues relating to a delayed audit.

The U.K.-based brand claims that Minto failed to deliver on his duties and responsibilities, resulting in a delay in the audit of FY22 results and a suspension of trading of the company’s shares in London.

According to a regulatory filing, the company is seeking to recover material sums of the “exceptional costs” it incurred as a result of the alleged matters.

“The company takes these matters extremely seriously,” Revolution Beauty said. “It is important for shareholders to note that there can be no certainty on the outcome of these legal proceedings, and the Company will make further updates to shareholders as appropriate in due course.”

Minto came under fire after an audit of the company’s accounts found that it had inflated sales by £9 million (approx. $11.4 million) to meet its annual targets. The investigation also found that Minto and the company’s former chief executive Tom Allsworth gave personal loans to several distributors and an unnamed employee worth £1 million ($1.2 million) and placed “materially larger than normal orders” in February 2022.