Published: June 9, 2025 | Breaking Business News
Mike Ashley’s retail empire Frasers Group has officially confirmed its interest in acquiring troubled beauty retailer Revolution Beauty, setting the stage for a potential cut-price takeover that could reshape the UK’s cosmetics landscape.
Revolution Beauty issued a statement this morning confirming that “Frasers is one of a number of parties conducting due diligence as part of the Formal Sale Process announced on 21 May 2025.” However, the company cautioned that “there can be no certainty that Frasers’ interest will result in a firm offer.”
Financial Turmoil Sparks Sale Process
The potential acquisition comes as Revolution Beauty faces severe financial headwinds. The mass beauty brand reported a devastating 26% decline in annual revenue for 2025, with FY25 revenue totalling approximately £141.6m, down from the previous year.
The beauty company had been “reviewing its funding structure” and was in discussions about a possible equity raise from its key shareholders before ultimately deciding to explore a full sale of the business.
The formal sale process is being managed by Panmure Liberum, with the UK-based company expecting to receive expressions of interest from potential parties by 11 June 2025.
Ashley’s Strategic Beauty Play
Mike Ashley, the billionaire boss of Frasers Group, is understood to be considering the bid as part of his expansion plans into the beauty sector. The move would add Revolution Beauty’s extensive product portfolio to Frasers’ retail empire, which already includes Sports Direct, Flannels, and House of Fraser.
Analysts are noting this move could antagonise rival department store chain Debenhams, which holds a minority stake in the beauty brand.
Multiple Suitors in the Running
Revolution Beauty’s confirmation reveals that Frasers is not the only party interested in the struggling retailer. The British makeup and skin care retailer had previously received a preliminary takeover approach from another unnamed company, suggesting a competitive bidding environment may emerge.
The company, which sells online and through concessions, had recently seen its shares slide to an all-time low in the face of tumbling sales.
What This Means for Shareholders
Revolution Beauty has advised shareholders to remain patient during the process. The company stated: “Further updates will be provided if and when appropriate. Shareholders are advised to take no action at this time.”
The potential takeover represents a lifeline for Revolution Beauty, which has struggled with declining performance and funding challenges throughout 2025. For Frasers Group, it could provide a strategic entry point into the lucrative beauty market at a significantly discounted valuation.
Market Impact and Timeline
Retail industry sources indicated this weekend that Frasers was considering whether to bid but was not certain to do so. With the June 11 deadline for expressions of interest approaching, investors and industry watchers are closely monitoring developments.
The outcome of this potential deal could have significant implications for the UK beauty retail sector, particularly as traditional retailers seek to diversify their portfolios amid challenging market conditions.
This is a developing story. We will continue to update as more information becomes available.
Key Takeaways:
- Frasers Group officially confirms interest in Revolution Beauty takeover
- Revolution Beauty revenue plunged 26% in 2025 to £141.6m
- Multiple parties conducting due diligence in formal sale process
- June 11 deadline for expressions of interest approaches
- Potential deal could reshape UK beauty retail landscape
