Recently, Revolution Beauty has reached a settlement with former major shareholder Chrysalis Investments, bringing an end to legal disputes that have plagued the embattled cosmetics brand. The settlement involves Revolution paying Chrysalis a “non-material sum,” reportedly less than 1% of Chrysalis’s market value, though the exact figure remains undisclosed. Both parties agreed to the resolution without any admission of liability, and Chrysalis confirmed it would not pursue further legal action.
Chrysalis, an investor in public and private companies, had threatened legal claims of over £45 million earlier this year. The dispute stemmed from Chrysalis’s investment in Revolution Beauty when the company went public in July 2021. Chrysalis initially purchased shares valued at more than £40 million but sold its stake in late 2022 for approximately £5.7 million, marking a significant loss.
Revolution Beauty’s challenges began in 2022 when its auditors refused to approve the company’s accounts for the previous year, prompting a suspension of its shares on the London Stock Exchange and an investigation into the business. The crisis was compounded by internal conflicts, including a public dispute with Boohoo, which owns over 25% of Revolution’s shares, regarding changes to the company’s leadership.
The turmoil ultimately led to the resignations of co-founder Adam Minto, former CEO Bob Holt, and chairman Derek Zissman. This settlement marks a step forward as Revolution Beauty works to stabilize its operations and reputation.
According to Revolution Beauty’s financial report, the company’s revenue in the first half of 2024 fell by 20% to £72.4 million ($91.6 million), with profits down by 48%.
