Frasers Group considers takeover deal for Revolution Beauty
Mike Ashley's Frasers Group is considering a takeover of Revolution Beauty, the troubled beauty retailer has said.
Revolution told shareholders on Monday morning that Frasers – which owns Sports Direct and Flannels – 'is one of a number of parties conducting due diligence' on the business.
It comes after Revolution formally put itself up for sale last month after being approached by an unnamed suitor.
'There can be no certainty that Frasers' interest will result in a firm offer for the company,' Revolution said in a statement.
'Further updates will be provided if and when appropriate. Shareholders are advised to take no action at this time.'
The company, which sells make-up and cosmetics online and through concessions, had recently seen its shares slide to an all-time low in the face of tumbling sales.
Bosses had previously told investors they were reviewing its funding options before its current £32 million credit facility expires in October.
In May, Revolution reported its sales dropped by 26% to £141.6 million for the year to February 28, compared with a year earlier.
It said this came after the brand reduced the size of its product portfolio while it was also affected by weakness in the US and online channels.
The company has faced a torrid few years amid leadership and accounting issues, including a dispute with its former boss and a tussle with one of its shareholders, fashion firm Debenhams, under its previous Boohoo Group name.
It comes after Sky News first reported on Saturday that Frasers Group was looking at a potential deal for Revolution.
Frasers Group has recently built up investments in a number of other retailers, including online specialist THG, which owns rival beauty brands including LookFantastic and Cult Beauty.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
36 minutes ago
- The Guardian
Women's Super League clubs hit record-breaking revenues in 2023-24 season
Revenues for Women's Super League (WSL) clubs climbed by 34% to hit £65m during a record-breaking 2023-24 season, according to analysis from the Deloitte Sports Business Group. Each of the 12 WSL clubs generated over £1m in revenue for the first time, with increases in commercial and matchday revenues contributing to significant growth across the league. Deloitte is forecasting WSL clubs' total revenue will reach £100m in the 2025-26 season after the Women's European Championship next month in Switzerland. Revenues climbed from £48m in the 2022-23 season, an increase driven by growth in commercial revenue, which now accounts for 40% of WSL clubs' total revenue. The 2023-24 season came after England finished runners-up to Spain in the 2023 Women's World Cup in Australia and New Zealand. 'Women's football in England is evolving rapidly,' Tim Bridge, lead partner in the Deloitte Sports Business Group, said in a statement. 'While challenges remain, it is clear there is potential for a passionate and engaged fanbase to drive the game's development. 'Capitalising on major international tournaments is important at specific points in time, but sustainable growth hinges on the domestic league's organic development.' Sign up to Moving the Goalposts No topic is too small or too big for us to cover as we deliver a twice-weekly roundup of the wonderful world of women's football after newsletter promotion The increases were driven mainly by four clubs, with Arsenal (£15.3m), Chelsea (£11.5m), Manchester United (£9.2m) and Manchester City (£6.6m) accounting for about two-thirds of the money made across the league.
The Independent
37 minutes ago
- The Independent
Building materials firm Lords Group buys rival CMO in rescue deal
Building materials firm Lords Group has snapped up online rival CMO in a rescue deal. London-listed firm Lords said it acquired the 'trade and assets' of CMO for around £1.8 million as part of a pre-pack administration. The deal will secure the future of around 120 workers at Plymouth-based CMO, who will join the wider Lords group. CMO, which was founded in 2008 as Construction Materials Online, sells more than 140,000 products to trade professionals and households through a raft of specialist superstore-branded company was listed on London's AIM junior stock market until February, when it delisted in order to help preserve funds. The firms highlighted that the deal will not include the Tiles business previously owned by CMO. Dean Murray, chief executive of CMO, said: 'The acquisition marks a new and exciting chapter for CMO. 'We have built a strong, digitally-led business over the past 15 years, and in Lords, we have found a partner that not only understands our model but shares our ambition. 'I am incredibly proud of what the CMO team has achieved and excited about what is next.' Shanker Patel, chief executive of Lords, said: 'We are delighted to welcome CMO into the Lords family. 'CMO brings a well-established digital platform, strong customer reach, and a specialist product-led approach that complements our own. 'This partnership allows us to blend traditional merchanting strengths with cutting-edge digital capabilities. 'We are also mindful of the impact of the pre-pack administration process on affected parties and are committed to conducting the transition with respect.'
Daily Mail
42 minutes ago
- Daily Mail
HMRC ramps up special investigations into the wealthy with AI and helps it claw back £1.5bn in tax in ONE YEAR
An increase in investigations into wealthy people's finances by HM Revenue & Customs yielded £1.5billion in extra tax receipts in one 12-month period, a law firm analysis claims. HMRC more than doubled the amount of tax it raked in via special investigations in the financial year ending 5 April 2024. In the previous tax year, it raised £713million via probes. In a bid to root out hidden income stashes and resolve unpaid tax bills, HMRC is increasingly turning to artificial intelligence and overseas tax authorities, according to experts at law firm Pinsent Masons. The tax authority is utilising a system called the 'Connect Computer System' to assist with its tax collection. The CCS, a computer software system, cross-references business' and people's tax records with other databases to establish fraudulent or undisclosed activities. When hunting for overseas income or assets, HMRC uses initiatives like the Common Reporting Standard and Global Forum, which ensures it is automatically notified when British taxpayers move assets to jurisdictions party to the agreements. In Britain, HMRC deploys its wealthy and mid-sized business compliance directorate team to weed out hidden wealth stashes and get unpaid tax paid. Pinsent Masons told This is Money that HMRC now 'regularly' receives information from overseas, including tax havens, on wealthy Britons. This information is then cross-checked with self-assessment returns data. The specialist HMRC team defines wealthy individuals as people with annual incomes of £200,000 or more in any of the last three years, or those with assets above £2million in any of the last three years. According to Pinsent Masons, the total amount of money collected by HMRC in tax from wealthy taxpayers rose to £5.2billion in the tax year ending 5 April 2024, up from £4billion in the previous tax year. An HMRC spokesman told This is Money: 'It's our duty to ensure everyone pays the right tax under the law, regardless of wealth or status. 'The Government is delivering the most ambitious ever package to close the tax gap and bring in an extra £7.5billion for public services per year by 2029-30.' In recent years, HMRC has been doubling down on its mission to root out concealed income and chase down unpaid tax more proactively. HMRC defines the 'tax gap' as the difference between the amount of tax that should, in theory, be paid to HMRC, and the amount that is actually paid. In the tax year ending 5 April 2023, the tax gap among wealthy people in Britain was estimated to be around £1.9billion. To close the tax gap further, HMRC will be upping its efforts again this year to ensure tax coffers are maximised. During the Spring Statement in March, Rachel Reeves announced that HMRC would get a cash injection of nearly £180million to help close the tax gap. The Spring Statement included £100million in new funding to recruit hundreds more compliance officers and experts tackling wealthy people, plus £79million to spend on third-party debt collectors over the next five years. The measures will enable the tax authority to chip away at unpaid tax liabilities that stood at more than £44billion at the end of December 2024. According to documents published alongside the Spring Statement, about £20billion worth of unpaid tax liabilities are more than 12 months old. The new HMRC hires are expected to net the Treasury £95million in 2029-30, accounting for the costs of hiring and training new recruits. Rachel Reeves unveiled £40billion worth of tax hikes in last autumn's Budget. Ian Robotham, legal director in tax disputes and investigations at Pinsent Masons, said: 'HMRC have been set some very hard targets for extra tax collection by the Chancellor. 'It is hard to see how they can achieve those targets without a sharp rise into tax investigations into the wealthy.' He added: 'The scale of specialist investigations into wealthy taxpayers shows HMRC has already been clamping down much harder on those suspected of underpaying tax. 'Wealthy taxpayers who know they have tax issues to settle should urgently seek professional advice. 'Penalties in respect of inaccuracies can be mitigated down where taxpayers are proactive in contacting them to tell them about and assist them in resolving inaccuracies.'
