Boohoo takes Revolution row to junior market regulator

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Boohoo takes Revolution row to junior market regulator

The escalating row between Boohoo and Revolution Beauty, the AIM-listed retailer, is poised to intensify with a complaint to the junior stock market regulator.

Sky News has learnt that Boohoo is drafting a letter to the AIM regulatory authorities demanding that Revolution clarifies an earlier stock exchange announcement that the online clothing retailer had obstructed efforts to finalise its accounts.

Boohoo also plans to seek assurances that voting decisions at a forthcoming Revolution Beauty EGM are upheld and not subsequently overturned, according to people close to the situation.

Insiders said Boohoo was considering requisitioning a second extraordinary general meeting in the coming days to remove additional Revolution directors and appoint more independent board members.

The battle between the two companies has been raging for weeks as Boohoo, which owns a 26.6% stake in Revolution, has sought to reshape its board.

Boohoo has accused Revolution of riding roughshod over corporate governance best practice by defying the wishes of shareholders by reappointing three executives immediately after they were removed at its annual meeting last month.

Boohoo said the move was motivated by greed, because it enabled the reinstated directors to receive share options worth millions of pounds.

Revolution has rejected the claims, saying that the trio’s reappointment was necessary to facilitate the resumption of trading in its shares.

The stock had been suspended for more than six months after the disclosure of serious accounting concerns at Revolution.

One person close to the situation said an attempt to broker peace between the two companies was not impossible ahead of the first EGM, which is expected to take place in about a month’s time.

Boohoo and Revolution both declined to comment on Sunday.

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