Mahabis gets lifeline as upmarket slipper brand rescued from administration
Upmarket slipper brand Mahabis has been bought out of administration by a new private equity group, which on Friday outlined plans to boost sales at the Shoreditch firm to £100 million within five years.
YYX Capital, which counts advertising guru Sir John Hegarty and Simba Sleep entrepreneur James Cox among its founders, has agreed to retain all 16 staff and existing supplier relationships as part of the rescue deal.
The purchase comes a month after startup Mahabis called in administrators at KRE Corporate Recovery.
Before its failure, millennials' favourite Mahabis had been known for its £60 slippers that could also be worn outside. It was founded by Ankur Shah and notched up sales of £25 million and profits of £2.5 million in 2016/17.
YYX's Cox, who becomes interim boss, said the footwear firm "unfortunately stumbled at a critical point". "Mahabis has never raised any external capital, so with the right backing, we believe we can further grow it globally, and at speed."
Cox added that it will look to expand in Europe, the US, and create exclusive ranges for online retailers.
He said: "We (YYX) are here to back entrepreneurs. We are confident we can operate a global business from the UK regardless of what happens after March with Brexit."
