Troubled fashion brand Revolution Beauty has brought back its former bosses to “reset” the business after failing to secure a buyer.

Co-founders Adam Minto and Tom Allsworth resigned following a series of accounting issues, but on Friday the company said the pair will return to tackle its plummeting sales.

Revolution, which sells make-up and cosmetics online and through concessions, said it had not received any suitable offers since launching a sale process earlier this year and, as a result, it was no longer looking for a buyer.

Frasers Group, owned by businessman Mike Ashley, said it did not plan on making an offer after previously exploring a possible bid.

Frasers Group owns a stake in Boohoo which, in turn, owns a stake in Revolution Beauty – meaning Frasers Group already owns a small chunk of Revolution Beauty.

As part of its attempt to turn the low cost make-up firm around, Revolution Beauty said it would look to raise about £15m by issuing new shares.

The cosmetics company reportedly rejected a takeover bid from specialist private equity firm True earlier this month.

Chairman Iain McDonald said it was “a great brand, but the business has lost its way”.

While Revolution Beauty sells its products through retailers such as Superdrug and Boots and online fashion websites including ASOS, it also has a strong presence on social media and worked with influencers and Love Island contestants in the past.

Retail analyst Jonathan De Mello said the brand was “in vogue” a few years ago but increased competition and rising costs, with consumers on tight budgets, meant its popularity waned.

However, a turnaround of the business would also require reigniting celebrity endorsements and collaborations to “win those consumers back”, he said.

Mr Allsworth will return as the company’s chief executive, while Mr Minto will take on a consultancy role with a £160,000 per year salary.

The co-founders will be carrying out a “new and refreshed strategy for Revolution Beauty, with a view to returning it to long-term profitability”, the firm said.

Further cost savings are expected, which will include cutting staff to free up an extra £7.5m by 2027.

Mr Minto quit as chief executive in 2022 after accounting issues delayed Revolution’s 2022 results and its shares were suspended.

There were also allegations Mr Minto and Mr Allsworth had made personal loans to an employee and to distributors, which were not disclosed to the board.

Mr Minto agreed to pay Revolution nearly £3m to settle the issues.

News of the pair returning to the company was “a bit of a surprise”, said Mr De Mello.

“They are the people that essentially scaled up the business and made it the success it was.”

“They have a track record of building the brand.”

On Friday, the company revealed a 25.5% drop in sales over the last financial year, with revenues totalling £142.6m in the 12 months to 28 February.

It also reported a pre-tax loss of £16.8m from an £11.4m profit the previous year.

Mr McDonald said: “We are confident that with a return to the founder-led management team who originally scaled the brand, there is a clear path back to growth and long-term value creation.”

Revolution Beauty’s share price rose 10.4% following the announcement.