Lush has resolved a legal disagreement with investor Silverwood Brands, a company run by the bath bomb retailer’s former chief executive officer Andrew Gerrie.
Gerrie and his wife Alison attempted to sell their 19.8% stake in Lush, valued at £216.8 million to SPAC Silverwood Brands, but the retailer blocked the transfer.
Lush said the sale terms did not match those previously offered to the remaining shareholders, adding that “the separation of legal and beneficial interests in the shares is not permissible”.
Additionally, only cash was allowed as payment for the shares, which Silverwood allegedly hadn’t used.
Lush revealed the legal dispute has been settled, saying that “Gerrie and Silverwood Brands have now accepted Lush’s position that the transaction was not in compliance with the company’s articles and the sale is not now proceeding.”
As part of the settlement, the shares have been returned to Gerrie, and a sum of £300,000 has been paid to Silverwood to cover legal expenses incurred during the process.
It comes just a week after fellow beauty rival The Body Shop fell into administration, leaving plenty of market share on offer for the sustainable retailer.
Shops are expected to remain open while administrators attempt to sort out a resume package.
“Whatever the outcome, it looks likely that many shops will shut for good, opening up fresh holes in high streets across the UK,” Susannah Streeter at Hargreaves Lansdown said on Monday of the impending administration.