Revolution Beauty is on Frasers Group's shopping list
It's just a few weeks since we heard that Revolution Beauty had received a takeover approach and was putting itself up for sale, so it comes as no surprise that ever-acquisitive Frasers Group has expressed an interest in a potential takeover.
Neither company has confirmed that fact but it was reported by Sky News at the weekend, which also said that any such move could 'stoke animosity' between Frasers and Boohoo / Debenhams Group, which is a major shareholder of Revolution Beauty.
The report said that Frasers has approached Revolution Beauty about a potential offer for the company and is considering whether to make a bid but is not guaranteed to do so.
That comes after Revolution said in late May that it had received a takeover approach, which is not believed to have come from Frasers, and formally invited other potential bidders to make themselves known to its advisers.
It also comes after Revolution made Iain McDonald its chairman. He's an experienced director although he does have close links with Boohoo/Debenhams as he's a director of that company.
The connections between the various parties are interesting given that Boohoo/Debenhams, as mentioned, has a sizeable stake in Revolution Beauty, although it's still a minority holding. Frasers in its turn has a large minority stake in Boohoo/Debenhams and used this to vote against that company changing its legal name from Boohoo Group to Debenhams Group earlier this year. Its vote was enough to block the change so the company's shares still trade under the name Boohoo Group, although its ticker symbol changed from BOO to DEBS and in non-financial communications it refers to itself as Debenhams Group.
As well as having an impact on its official name, the animosity between the two groups resurfaces regularly and it will be interesting to see a potential battle between them should Boohoo/Debenhams also tries to take over Revolution (it has made no public move so far).
Frasers and Boohoo have faced off against each in takeover battles before with Boohoo a few years ago winning the Debenhams prize that Frasers majority owner Mike Ashley had long coveted. This time around the result could be different as Frasers has much more financial flexibility than under-pressure Boohoo does. That said, Frasers isn't known for being lavish with its bid prices and could be beaten by a bidder with equally deep pockets and a willingness to dip further into them.
The process to sell Revolution Beauty is highly visible given that the company is stock exchange-listed so we should get regular updates on how the process is proceeding.
That listing underlines the problems the company has been faced with and its share price has plummeted and its market capitalisation as of close of business on Friday was only a little over £23 million. Shares in the company were trading just over 7p each, far below their debut price almost four years ago of £1.70 each.
The fall in the share price is hardly surprising given the problems the company has faced, including probes linked to its accounting and a tough market.
A year ago it was able to report a return to profitability, but recent periods have seen it reporting sales falls and only in May it said that sales dropped by more than it had expected.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
19 minutes ago
- Fashion Network
De Beers draws interest from billionaire Agarwal, Qatari funds, sources say
Diamond giant De Beers has drawn interest from at least six consortia, including billionaire Anil Agarwal, Indian diamond firms and Qatari investment funds, sources close to the companies told Reuters. De Beers is being carved out of Anglo American as the London-listed miner refocuses on copper and iron ore but the move comes with global diamond prices under pressure. Agarwal, chairman of Vedanta Resources, which has mines in Zambia and South Africa, is among the interested parties, as part of a bigger group, two sources said. Anglo and Agarwal both declined to companies including KGK Group and Kapu Gems, which dominate the domestic cutting and polishing trade, and are De Beers's biggest customers, have also expressed an interest, two sources with knowledge of the matter said. KGK Group and Kapu Gems did not respond to requests for comment. Anglo American, whose book value for De Beers stands at $4.9 billion, following $3.5 billion in impairments over the last two years, said it has retained financial advisers Morgan Stanley, Goldman Sachs and Centerview to help with a sale or a demerger and potential listing.
France 24
35 minutes ago
- France 24
Iran says no sanctions relief in US nuclear proposal
The two foes have held five rounds of Omani-mediated talks since April, seeking to replace a landmark agreement between Tehran and world powers that set restrictions on Iran's nuclear activities in return for sanctions relief, before US President Donald Trump abandoned the accord in 2018 during his first term. In a video aired on Iranian state TV, parliament speaker Mohammad Bagher Ghalibaf said that "the US plan does not even mention the lifting of sanctions". He called it a sign of dishonesty, accusing the Americans of seeking to impose a "unilateral" agreement that Tehran would not accept. "The delusional US president should know better and change his approach if he is really looking for a deal," Ghalibaf said. On May 31, after the fifth round of talks, Iran said it had received "elements" of a US proposal, with officials later taking issue with "ambiguities" in the draft text. The US and its Western allies have long accused the Islamic republic of seeking to acquire nuclear weapons, a charge Iran has consistently denied, insisting that its atomic programme was solely for peaceful purposes. Key issues in the negotiations have been the removal of biting economic sanctions and uranium enrichment. Tehran says it has the right to enrich uranium under the nuclear Non-Proliferation Treaty, while the Trump administration has called any Iranian enrichment a "red line". Trump, who has revived his "maximum pressure" campaign of sanctions on Iran since taking office in January, has repeatedly said it will not be allowed any uranium enrichment under a potential deal. On Tuesday, Iran's top negotiator, Foreign Minister Abbas Araghchi, said the country "will not ask anyone for permission to continue enriching uranium". IAEA meeting According to the UN nuclear watchdog, the International Atomic Energy Agency (IAEA), Iran is the only non-nuclear-weapon state in the world that enriches uranium up to 60 percent -- close to the 90 percent threshold needed for a nuclear warhead. Iran's supreme leader Ayatollah Ali Khamenei on Wednesday rejected the latest US proposal and said enrichment was "key" to Iran's nuclear programme. The IAEA Board of Governors is scheduled to meet in Vienna starting Monday and discuss Iran's nuclear activities. On Sunday the Atomic Energy Organization of Iran warned it could reduce its level of cooperation with the UN nuclear watchdog if it adopts a resolution against it. "Certainly, the IAEA should not expect the Islamic Republic of Iran to continue its broad and friendly cooperation," the Iranian agency's spokesman Behrouz Kamalvandi told state TV. Araghchi on Friday accused European powers of "opting for malign action against Iran at the IAEA Board of Governors", warning on X that "Iran will react strongly against any violation of its rights". A quarterly report from the IAEA issued last week cited a "general lack of cooperation" from Iran and raised concerns over undeclared nuclear material. Tehran has rejected the report as politically motivated and based on "forged documents" it said had been provided by its arch foe Israel.
Fashion Network
37 minutes ago
- Fashion Network
Eco Age relaunches "as agency for future fashion"
Sustainability consultancy Eco Age is relaunching this month as 'the voice of future fashion'. The 16-year-old agency behind the Green Carpet Fashion Awards and included former clients such as Gucci, Stella McCartney, Chopard and Diesel, has now undergone an extensive rebrand, 'creating an elevated identity that merges conscious fashion with nature-inspired aesthetics'. Having closed last year following 'a financial attack' on the business, it has reopened under the ownership of former journalists John and Clodagh Higginson, who also own communications agency Higginson Strategy. Marwa Zamaray, who has two decades of experience in the fashion industry, has also joined as partner and executive director. Its new tagline 'Fashion. For A Future', emphasises the agency's commitment to working with the fashion industry as it targets 'a positive, innovative and far more sustainable future'. Claiming more than 220,000 followers across live social media channels, including Instagram, LinkedIn, TikTok and Facebook, it is 'reigniting its base of followers'. Its presence on the platforms has been boosted by partnerships with influencers, including sustainability campaigner and model Dr Brett Staniland. Meanwhile, the agency has hired an advisory board that includes Africa Fashion Guide founder Jacqueline Shaw, climate activist Tori Tsui, Circuthon founder Paul Foulkes-Arellano, fashion journalist turned activist Bel Jacobs, and By Rotation founder Eshita Kabra-Davies. Clients include colour platform technology company Sparxell and Textile Genesis, 'a traceability platform custom-built for the fashion and textile ecosystem'. The agency also plans to reinstate the Green Carpet Fashion Awards next year. John Higginson, CEO, said: 'Every day we get the opportunity to make the world better simply by what we choose to wear. When we buy less, better quality and make it last, we send a powerful message to the world without even opening our mouths. When we buy fast fashion, which is cheap because the planet and workers have been ripped off and abused, we feel cheap and nasty. 'The number of people accepting this reality is growing by the day. Eco Age is a home for these people. We are supplying them with the information they need to make better choices and working with the brands and fashion companies providing the solutions.' Zamaray added: 'Eco Age changed the way the world talks about fashion, bringing sustainability into the spotlight and making ethical fashion a priority from boardrooms to consumers. It built a legacy of influence, trust, and action across the industry. 'Today, with rising pressure from regulations, investors, and conscious consumers, Eco Age is more vital than ever, a lighthouse guiding fashion through transformation. I'm proud to carry the torch forward, with a clear focus on driving lasting impact for both people and planet.'
