Luxury slipper maker slides into administration
The online retailer Mahabis, which produces high-end indoor footwear, entered administration on 27 December 2018 and described itself as 'desperately disappointed' by the outcome after racking up £2.6m in debt
2 Jan 2019
Founded by Ankur Shah, a former criminal barrister and entrepreneur, in 2014, Mahabis sold its footwear in more than 100 countries, targeting customers through email discount offers and online advertising. It was reported to have increased its debt to creditors to £2.6m in the 12 months to June 2017, increased from £927,000 in the previous year.
The administration will be handled by KRE Corporate Recovery, which provides corporate recovery services from its Reading and Newcastle offices.
According to a statement published on the company’s website, ‘Unfortunately, we are very sorry to report that Mahabis limited entered administration late on the 27th December 2018. We have, for the moment, ceased trading as the administrators take over the business.
‘During the four years since we launched, we sold nearly a million pairs of slippers to customers in over 100 countries; we are all desperately disappointed at this outcome. Please bear with us as we do our best to work through the current circumstances.’
The company also warns that customers seeking to return goods ‘will have an unsecured claim in the Administration for any funds owed’ and that ‘It is very likely that if you return goods you will not receive a full refund and any refund will take many months’.
Typically the slippers retailed for between £30 and £70, with merino wool linings, nubuck leather uppers and leather soles.
According to KRE Corporate Recovery, ‘The administrators have retained the Company’s workforce whilst a purchaser of the business and assets is sought and they hope this process can be concluded in the next 14 days.
‘Several parties have indicated a strong interest in acquiring the business and management and the administrators are all hopeful that the business can be sold and continue early in the new year.’
Report by James Bunney