Revolution Beauty has put itself up for sale after being approached by a potential buyer, following a drop in the business’s share price to an all-time low.
The company, which sells make-up and cosmetics online and through concessions, said it has decided to launch a formal sale process.
This follows it receiving a takeover approach from a potential buyer, which it did not name.
Revolution said it expects possible bidders to put forward their interest by June 11.
Last week, bosses at the company told investors they were reviewing its funding options before its current £32 million credit facility expires in October.
Shares in the troubled firm dropped by as much as 40% on the day, to their lowest level on record.
The share price rose by about a quarter on Wednesday as investors welcomed the sale process, but it remains close to historic lows.
Revolution’s sales dropped by 26% to £141.6 million for the year to February 28, compared with a year earlier, it reported last week.
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 Boohoo.
It gained a new chief executive last year, Lauren Brindley, who joined the firm from US pharmacy giant Walgreens. However, she is set to leave at the end of the month to go to US retailer Ulta Beauty.
