Fast fashion group Boohoo has increased its stake in Revolution Beauty by over 25 percent as the brand continues an investigation into its audit reporting.
The retailer has upped its investment from 12.8 percent to 26.4 percent, making it the beauty brand’s largest single shareholder.
In a regulatory filing, Boohoo said the investment reflected the group’s “belief in the growth potential” of the company, noting that it intends to be a “supportive stakeholder and long-term partner”.
Products by Revolution Beauty are already sold through several Boohoo-owned brands, including its online digital department store, Debenhams.
It comes as the UK-based beauty firm continues to deal with accounting uncertainties that caused it to miss the filing of its financial results for FY22.
In September, the group suspended the trading of its ordinary shares after auditors failed to complete its results on time.
An independent review was then launched after auditors expressed “serious concerns” over the group’s FY22 accounts.
In response, Revolution’s founder and CEO Adam Minto stepped down from his position, with the group opting to appoint Bob Holt to the role after his stint as interim chief operating officer.
A report by Sky News has now said Revolution Beauty’s main bank lenders, HSBC and NatWest, have hired advisors from Teneo Financial Advisory to monitor the situation.