Revolution Beauty Plots $15 Million Capital Boost and Cofounder’s Comeback

Revolution Beauty is going back to basics. The British cosmetics company welcomes back one of its founders, who will take over as CEO, two years after a financial scandal led to both executives leaving their positions within Revolution Beauty.

The decision comes after the company announced in May that it was looking for a potential buyer for the company’ s business. The name that resonated most at the time was Frasers Group, although Mike Ashley’s group eventually withdrew from the process. In a statement, Revolution Beauty has explained that, after not receiving any offer that would benefit the company, it has decided to close the possibility.

It is in this framework that the British company has also announced the return of Tom Allsworth, co-founder of Revolution Beauty with Adam Minto in 2014, as CEO.“Allsworth’s appointment will be made official in the coming days,“ the company explained in a statement, while adding that Minto will also return to the day-to-day running of the company, through a consulting role.

Revolution Beauty closed the year with an adjusted loss of £5.5 million

Along with the return of both executives, Revolution Beauty is also preparing a capital increase of up to €15 million. “Tom, with the help of Adam and the company’s management, will be at the forefront of implementing a new plan to restore Revolution Beauty’s growth and establish a clear roadmap towards long-term value creation,“ the company explained.

With sales of 142.6 million pounds ($191.6 million) at the end of 2024, the company posted a drop of up to 25.5%. Adjusted net profit, meanwhile, was negative, with a loss of 5.5 million pounds ($7.3 million) and net debt that, excluding leases, reached 26.2 million pounds ($35.2 million).

The drop in business has continued in the first quarter of the current financial year (which will close on February 28th), and even accelerated. As Revolution Beauty explained in a statement, at the end of the first three months of the year, sales fell by 29% year-on-year, and it expects another 25% drop in the first half of the year as a whole.

“The focus of this restructuring plan is to re-implement Revolution Beauty’s original formula for success: trend-driven innovation combined with a product-based strategy,“ the company said in a statement.