Mike Ashley pulls out of race to buy Revolution Beauty
Mike Ashley has pulled out of the race to buy Revolution Beauty, raising fresh questions over the future of the struggling cosmetics brand.
The Frasers billionaire has ruled out a bid for Revolution, it is understood, with a stock market announcement expected on Thursday.
His exit from the process comes just over a week after it emerged that Frasers was considering an all-cash bid for Revolution.
At the time, the cosmetics brand said Frasers was among the companies conducting due diligence ahead of a potential offer. However, sources close to the process said Mr Ashley had decided not to table an offer partly because of the company's debt pile.
Revolution, which has been struggling with sliding sales and a 70pc drop in its value over the past year, had said there was no certainty that Frasers would make a formal bid.
Revolution's largest shareholder is Boohoo, which counts Frasers as its own malcontented number-one investor. It is understood Mr Ashley sought to acquire Boohoo's 29pc stake in Revolution at 30 pence per share as recently as late last year. The shares are now trading at less than eight pence.
Revolution is under mounting financial pressure after revenues plunged by 26pc, falling from £191m to £141m in the year to February 2025.
Bosses at Revolution are attempting to refinance a £32m credit facility before it expires in October 2025.
The size of the bank loan currently eclipses the entire value of Revolution Beauty, which now has a market capitalisation of just £25m. Mr Ashley recently sought to open talks about refinancing the debt himself but Boohoo has not engaged, according to City sources.
Previously friends, Boohoo co-founder Mahmud Kamani and Mr Ashley were made rivals when Frasers lost out to Boohoo in a tussle for control of Debenhams in 2021. Frasers had already seen its £150m investment in the department store chain wiped out by its insolvency.
Tensions last year escalated after Mr Ashley moved to seize control of Boohoo management after building up a stake of almost 30pc.
Frasers demanded a board seat at Boohoo, claiming its financial results and refinancing were a 'catastrophe' for the company and 'far worse than shareholders could have ever imagined'. The Sports Direct owner also said Mr Ashley should be made Boohoo's chief executive.
Boohoo responded to the attempted coup by claiming that the Sports Direct tycoon had an 'ulterior motive', suggesting he could be trying to derail the company's turnaround plan to snap up its assets at a reduced price.
Ultimately, Boohoo shareholders rejected a proposal to add Mr Ashley to its board. However, the two sides have continued to clash, with Frasers in March voting to block a proposal for Boohoo to change its name to Debenhams. The opposition ultimately proved futile.
Earlier this month, The Telegraph revealed that Mr Ashley was plotting a fresh bid to tighten his grip on Boohoo by offering a financial lifeline.
He has written to Tim Morris, Boohoo's non-executive chairman, to demand a meeting to discuss the possibility of becoming a lender to the company as well as its biggest shareholder. Boohoo has been in talks to refinance £175m in outstanding debt, as it faces tumbling sales.
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