High-end slipper brand Mahabis goes into administration

Company warned customers that they are unlikely to receive refunds if goods are returned during administration process

Slipper brand Mahabis has ceased trading after going into administration last month.

The company called in administrators from KRE Corporate Recovery on 27 December, it said in a statement on its website.

The move comes despite high sales of the luxury slippers, which retail at £69.99.

“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,” the firm said.

“Please bear with us as we do our best to work through the current circumstances.”

The company’s entire workforce has been retained while administrators seek a buyer for the business.

According to a statement from the group, several parties have “indicated a strong interest in acquiring the business” and management and the administrators are “all hopeful that the business can be sold and continue early in the new year”. It is hoped that a sale can be concluded within the next 14 days.

Mahabis said customers who return goods will have an unsecured claim in the administration for any money owed, but warned that “it is very likely that if you return goods you will not receive a full refund and any refund will take many months”.

News of the company’s collapse comes days after HMV entered administration for the second time, putting 2,000 jobs at risk.

Meanwhile, menswear brand Greenwoods has also called in administrators and closed its chain of shops in the north of England, resulting in the loss of more than 100 jobs.