Debenhams Group to back Revolution Beauty fundraise

Debenhams Group – formerly Boohoo Group – has said it intends to support Revolution Beauty’s proposed 15 million pound fundraise and plans to subscribe for shares proportionate to its entitlement.

The fashion group, which holds 27.03 percent of Revolution’s issued share capital, also announced it was in discussions with the beauty brand to establish a more “formal commercial arrangement”. With this, Revolution is to supply certain Debenhams-owned brands with branded cosmetics as part of an exclusive licensing agreement, subject to royalty payment.

In a statement, Dan Finley, chief executive officer of Debenhams, said the company was pleased to support Revolution’s new leadership team as they put in place a strategic plan. “We see significant potential in collaborating more closely with Revolution, including through licensing arrangements that will allow Debenhams’ brands to offer exclusive, high-quality cosmetics to our customers,” Finley added.

The news comes as Revolution Beauty terminated its ongoing sales process and any associated discussions after determining that no viable proposals had been made. Among the bidders were that of Frasers Group, a majority shareholder of Debenhams which was said to have been one of a number of parties to pursue the beauty label, but later dropped out of the race.

Revolution has now said it plans to launch a Placing and Subscription process, as well as a Retail Offer as part of the fundraise, the proceeds of which it will use to reduce debt, provide working capital, pay fees and provide a basis for the business to return to growth.