UK’s luxury slipper brand Mahabis has become the latest retail business casualty, calling the administrators amid Christmas and New Year celebrations.
Interestingly, still, it is not clear what caused to the firm’s financial turmoil. However, its accounts show it owed £2.6 million in 2018.
The London-based brand had witnessed a steep growth in a short period of time, successfully selling one million pairs of slippers in just four years. The business was highly relied on pop-up advertisements to reach shoppers and customers. When it comes to the sale of the slippers, a pair cost around £70, were reported to be in excess of £20m.
The retail business, Mahabis was founded in 2014 by Ankur Shah who moved forward to serve the market in a unique style targeting the young population. The stylish trendy woollen slippers could be transformed into outdoor footwear using detachable rubber soles.
Ankur Shah is the son of Indian parents who arrived in England during the 1970s as fully qualified physicians. Initially, Shah was trained as a barrister before starting his business in the UK.
Shah’s firm advertised widely through social networks such as Facebook and Instagram in an attempt to attract the younger generation. The slippers were sold in 44 countries, with Mahabis claiming to have shifted millions of pairs.
“Unfortunately, we are very sorry to report that Mahabis limited entered administration late on December 27, 2018. We have, for the moment, ceased trading as the administrators take over the business… We are all desperately disappointed at this outcome. Please bear with us as we do our best to work through the current circumstances,” said Mahabis in a statement on its website.
In an advisory to its customers, the firm has also added, “any customers who return goods will have an unsecured claim in the Administration for any funds owed. It is very likely that if you return goods you will not receive a full refund and any refund will take many months...”
The firm had provided a healthy, comfortable environment for its staff. Accordingly, the firm's staff worked four days per week and were encouraged to work from anywhere and anytime.
