Revolution Beauty Ends Sale Process, Co-Founders Allsworth, Minto Expected to Return

Revolution Beauty is undergoing a major restructuring after ending its formal sale process due to a lack of suitable takeover proposals, with co-founder Tom Allsworth set to return as CEO and co-founder Adam Minto rejoining in a consultancy role. The company plans to raise approximately £15 million through an equity fundraise to reduce debt, provide working capital, and support a strategy reset aimed at returning the business to long-term profitability. Sales have declined sharply by more than 25% year-on-year to £142.6 million, leading to a pre-tax loss of £16.8 million for the year ended February 28, compared to a profit the previous year. The co-founders and largest shareholder Debenhams, which collectively hold 57.6% of the company, are backing the fundraising effort, and the company aims to achieve annual cost savings of £7.5 million by 2027 through headcount reductions and portfolio rationalization. Interim CEO Colin Henry will step down once the equity raise is complete, with Allsworth taking over to lead the turnaround alongside Minto and the existing management team. The move comes amid challenges including previous accounting issues and the departure of prior leadership, with the co-founders tasked with resetting a company that its chairman has acknowledged had "lost its way."