The upmarket slipper model Mahabis has turn out to be the newest retail casualty, calling within the directors days after Christmas.
Based in 2014 by the entrepreneur Ankur Shah, Mahabis aimed to revolutionise a staid market by focusing on millennials with stylish woollen slippers that might be remodeled into out of doors footwear utilizing removable rubber soles.
In a press release on its web site, the corporate mentioned: “We’re very sorry to report that Mahabis restricted entered administration late on the 27th December 2018. We now have, for the second, ceased buying and selling because the directors take over the enterprise. We’re all desperately dissatisfied at this end result. Please bear with us as we do our greatest to work by way of the present circumstances.”
The London-based firm loved explosive development in its brief life, promoting near 1m pairs of slippers in 4 years. In a latest interview with the Instances, Shah mentioned the corporate had recognized a spot available in the market for “the Nike of downtime”, and analysts instructed the corporate was price £75m-£100m. It’s not clear what led to the corporate’s monetary difficulties.
Shah, who first skilled as a legal barrister, beforehand loved success with one other enterprise, a social media promoting firm that he offered to the credit score checker Experian.
Mahabis relied closely on pop-up advertisements to achieve consumers. Gross sales of the slippers, which value round £70 a pair, have been reported to be in extra of £20m.
No redundancies have been made on the firm, which made a advantage of its versatile work tradition. Workers labored a four-day week and have been inspired to “work from wherever and at any time”. The corporate even printed a Downtime Manifesto to spotlight the necessity for a more healthy work-life steadiness.
Mahabis mentioned clients wishing to return objects wouldn’t obtain a full refund and the method might take months as claims can be processed by the directors: “We’d advocate due to this fact that you just think about fastidiously whether or not or to not really return items,” it mentioned.