The upscale slipper brand Mahabis, once a rising star in the retail industry, has unfortunately hit a roadblock by filing for administration. This surprising development has left many in the industry shocked as the company had previously been seen as a success story. Despite its strong business model and appeal to affluent Millennial shoppers, Mahabis has ceased trading, leaving its once thriving website now closed.
Mahabis gained recognition for its high-end footwear featuring interchangeable rubber soles, making its comfortable indoor slippers versatile for outdoor use. With nearly a million pairs sold globally in a relatively short time frame, the company reached a valuation of approximately £100 million. Unfortunately, like many innovative startups, Mahabis has succumbed to the challenges faced in the competitive retail environment.
Founder Ankur Shah, renowned for his previous success in the tech industry before venturing into the world of luxury slippers, fostered a progressive work culture at Mahabis. The company offered family-friendly policies and focused on an active social media marketing strategy, indicating a promising future. Despite Shah’s optimism about weathering the storm of tough retail conditions, Mahabis ultimately could not escape the hardships that have affected the wider fashion sector.
Now in the aftermath of administration, Mahabis is tasked with addressing customer dissatisfaction and managing creditor demands. Recent accounts of the company up to June 2017 showed debts amounting to £2.6 million, a significant increase from the previous year. With the brand’s future hanging in the balance, it remains uncertain if Mahabis can make a comeback in an industry filled with fierce competition.
For more information on the rise and fall of Mahabis, read here here.
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