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.
