Revolution Beauty has ended its sale process and is returning to being a founder-led business after failing to find a buyer.
To support the renewed strategy, Revolution Beauty has announced plans to raise approximately £15 million through an equity placing, marking a potential reset for the embattled cosmetics company.
The multi-channel beauty brand will issue up to 500 million new ordinary shares at 3p each – a 14% discount to the prior closing price of 3.5p. The placing represents a massive 156.5% of existing shares, significantly diluting current shareholders.
Revolution Beauty investors Debenhams and the founders, who hold 7.6% of existing shares, have committed to participate in the placing. The company will also launch a separate £1.5 million retail offer for UK shareholders.
To lead the business forward, Co-founder Tom Allsworth will return as chief executive. His fellow founder, Adam Minto, will rejoin in a consultancy role. The duo previously grew Revolution Beauty to nearly £190 million in revenue, delivering 99% compound annual growth between 2014 and 2019.
Shareholders should be mildly optimistic about their return.
Strategic overhaul
The return of the founders follows a torrid period for Revolution Beauty. Revenue plunged 26% to £141.6 million in the last financial year as management discontinued over 6,000 product lines. Trading in early 2025 proved “softer than planned” due to weakness in digital retail channels.
The founders have outlined a three-pronged strategy: refined product development and pricing, streamlined operations, and optimised marketing spend.
With shares losing 98% of their value over five years, investors will hope the new strategy works.