Revolution Beauty has launched another attack on Boohoo as a daily war of words continues over the control of the beauty specialist.
Following yesterday’s criticism by Boohoo alleging a “lack of transparency” over share awards to Revolution Beauty directors, whom the fashion group is seeking to oust, Revolution defended its position and attacked Boohoo management incentive packages and standards of corporate governance.
Revolution said the terms of share options worth £2m awarded to management and other staff had been fully disclosed.
It maintained they reflected “the hard work and commitment needed over the past 12 months to secure the company’s solvency and restore the trading of the shares on AIM, together with a 12-month holding period to secure commitment to the sustainable recovery and return to growth going forwards”.
Revolution continued: “These amounts pale in comparison to the extremely management-friendly incentive packages Boohoo has awarded in the past, including most recently awarding the executive team significant cash bonuses even after missing certain financial targets.”
Revolution also attacked governance standards at Boohoo. It said: “The board finds it extremely ironic that Boohoo looks to highlight Revolution Beauty, in their view, ‘contravening best practice in relation to corporate governance’.
“As shareholders will be aware, Boohoo has a long and well-documented track record of substandard corporate governance and legal, reputational, supply chain and shareholder engagement issues.”
The management of Revolution has embarked on a turnaround plan in the wake of an accounting scandal that led to the delay of financial results and potential legal action against its founder.
Share trading, which had been suspended for several months, resumed this week and the stock is up 45% compared to when it was suspended.
Boohoo, which has requisitioned a general meeting, aims to install its own leadership at Revolution, including veteran retailer Alistair McGeorge, former Boohoo finance boss Neil Catto and former THG beauty boss Rachel Horsefield.
No comments yet