The founding father of Revolution Beauty, the London-listed cosmetics group, is in negotiations to repay almost £3m to settle allegations that he breached his fiduciary duties to the corporate.
Sky News has learnt that Adam Minto, who stepped down as chief govt simply over a yr in the past, is in superior talks at hand over the multimillion pound sum.
Sources mentioned a settlement settlement might be introduced inside weeks, with the talks doubtlessly being confirmed to the London Stock Exchange as early as Monday.
Mr Minto’s co-founder, Tom Allsworth, can be in discussions with Revolution Beauty to amend the timetable for deferred funds owed to him for his stake in Medichem, a haircare and skincare producer, the sources added.
Revolution Beauty hopes the twin settlement will draw a line underneath a bitter dispute which arose through the yr after it listed in London with a valuation of almost £500m.
A collection of governance and operational crises have destroyed a lot of the corporate’s worth, leaving it with a market capitalisation at Friday’s shut of simply £81m.
Revolution, which positions itself as a mass market magnificence vary, is offered via 1000’s of retailers together with Superdrug shops within the UK.
It constructed a powerful following amongst youthful customers by forging collaborations with media properties together with the ITV relationship present Love Island.
Employing simply over 400 folks, it has overhauled its total management group over the past 12 months.
Mr Minto left in November 2022, having stepped again from day-to-day administration the earlier month.
Revolution Beauty mentioned his exit was on account of “events since the IPO”.
It was not till June this yr that the corporate disclosed that it had begun authorized proceedings towards him.
“The claim alleges that Mr Minto breached his fiduciary, statutory, contractual and/or tortious duties to the company.
“Certain of the issues alleged contributed to the delay within the audit of the group’s FY22 outcomes, and to the suspension of the corporate’s shares from buying and selling on AIM.
“The company is looking to recover material sums relating to the exceptional costs the company incurred as a result of the matters alleged.”
This weekend, it was unclear whether or not a fee from Mr Minto of near £3m would signify a considerable proportion of the “material sums” initially referred to by Revolution Beauty.
The accounting and buying and selling issues which arose after its flotation culminated in Boohoo Group, the net trend group, constructing a stake in it.
In July, the 2 firms reached a compromise settlement which concerned Revolution Beauty’s chairman and chief govt stepping down.
Boohoo stays a serious shareholder within the firm.
On Saturday, a spokesman for Revolution Beauty declined to remark, whereas Mr Minto couldn’t be reached for remark.
Source: information.sky.com”