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Online slipper retailer Mahabis in administration

Upmarket footwear e-tailer Mahabis – known for its high-end slippers – has announced it is in administration just four years after it was formed.

The company founded by tech entrepreneur Ankur Shah in 2014 called in KRE Corporate Recovery late on 27 December to take over the business.

Mahabis is one of a growing number of direct-to-consumer brands reshaping the retail market, and it relied on creating a prominent presence across social media platforms to spread its message to customers.

In a statement on its website, the company asked customers to “bear 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 late on the 27th December 2018,” it said.

“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.”

It added that any customers who return goods will have “an unsecured claim in the administration for any funds owed”, with it being “very likely” that if people return items they "will not" receive a full refund. Any refund will take many months to materialise, the company said.

“We would recommend therefore that you consider carefully whether or not to actually return goods,” the statement continued, before directing customers to this return request form from which the administrator will process the claims.

In an interview with The Times, published in October, Shah said that the company sold £1.5 million worth of slippers in its first year, £10 million in the second, and over £20 million last year.

The founder, who is the sole shareholder in the business, acknowledged marketing is the business’s “biggest cost by far”.

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