High-end slipper company Mahabis rescued from administration

New owners plan to turn luxury brand into £100m business within five years

High-end online slipper seller Mahabis has been rescued from collapse after being bought by investment group YYX Capital.

Mahabis, founded by former barrister Ankur Shah in 2014, fell into administration in late December. At the time Mahabis said it was “desperately disappointed”.

On Friday, the group said the sale to YYX would mean all Mahabis’ staff will be retained, supplier relationships will be maintained and “the business will be able to continue to grow globally”.

YYX is led by James Cox, founder of mattress startup Simba Sleep, who will become interim chief executive of Mahabis. Mr Shah is to leave the company.

Mr Cox said: “Ankur Shah and his team have built a great business in Mahabis which unfortunately just stumbled at a critical point.

“It has an established brand name and good customer recognition having already sold nearly a million pairs of its iconic design footwear in over 100 countries in just over 4 years.”

He added: “Mahabis has never raised any external capital, so with the right backing, we believe we can further grow Mahabis globally, and at speed.

“Its high margin product category with a large addressable market, both online and offline, and presents exactly the kind of value YYX are looking for.”

According to Mr Cox, Mahabis reported £25m in sales in 2016-17 and recorded earnings of around £2.5m.

He said YYX plans to appoint a “well-recognised creative director” with the aim of taking Mahabis “back to these levels and beyond”, with the ultimate target of building a business worth £100m within five years.

Mr Shah said: “We achieved an enormous amount in a very short space of time. Whilst the decision to go in to administration was a difficult one, this was a great outcome for both employees and suppliers.

“Whilst I now plan to pursue other projects, I hope YYX can propel the brand in new and exciting directions.”