Thu, 03 Jan 2019 | ADMINISTRATION
With a reputation for minimalism, Mahabis, a Scandinavian-inspired brand and the maker of high-end slippers, has gone into administration.
The company has appointed administrators from KRE Corporate Recovery, ceasing trading while the administration is underway.
The company sold £1.5 million worth of slippers in its first year, £10 million in the second, and over £20 million last year.
Although the exact reasons for the collapse remain unknown, it seems when a brand rises to fame extremely quickly, there can be difficulties in using a direct-to-consumer model.
Launched four years ago, Mahabis has sold nearly a million pairs of slippers in over 100 countries.
In a statement on its website, the company said: “[B]ear with us as we do our best to work through the current circumstances.
“Unfortunately, we are very sorry to report that Mahabis Limited entered administration.
“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.”
Joining the growing number of direct-to-consumer brands, Mahabis heavily used social media platforms to market to customers and with the wide availability of contract manufacturers, was able to make new products quickly and take payments using cheap computing infrastructure.
Its founder, Ankur Shah, set out to build the “Nike of downtime” and his social media presence of the cosy-looking slippers with a distinctive yellow rubber gained wide popularity on Instagram and Facebook.
For more news stories about administrations click here. For all our administrations listings, click here.
Car dealership operating as a Ford retail franchise from freehold premises. Offers a full range of facilities, including new & used car sales, service workshop & body shop, in addition to retailing fuel from an onsite petrol forecourt. Excellent free...
Design & installation of energy efficient kitchen schemes for the commercial food service industry. Also performs reactive repairs & planned maintenance of food service equipment. Planned maintenance contracts offer long-term recurring revenue stream...
Stocks an extensive range of industry-leading consumer electronic goods, including games consoles and home entertainment equipment. Well-established, international client base with several long-standing relationships with several blue-chip clients, s...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources