Online retailer Mahabis has been bought out of administration by YYX Capital. The investment boutique is co-headed by James Cox, who co-founded online mattress retailer Simba Sleep.
The acquisition, agreed with administrators KRE Corporate Recovery, will see Mahabis’ team retained, and supplier relationships maintained. Cox will become interim chief executive of Mahabis, and YYX Capital will invest in developing the footwear brand’s eCommerce, marketing, communications, online and offline retail channels. Cox said that in the 2016/17 year, Mahabis achieved around £25 million in sales and recorded operating earnings of £2.5 million.
“Ankur Shah and his team have built a great business in Mahabis which unfortunately just stumbled at a critical point,” Cox said. “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 four years.” Shah will not remain with the business he founded.
“Mahabis has never raised any external capital, so with the right backing, we believe we can further grow Mahabis globally, and at speed,” added Cox. “Using the full force of the YYX team, including the addition of a well-recognised creative director, with a strong track record in the sector to further curate the product range, it is our aim to quickly take Mahabis back to these levels and beyond. By improving the sales mix and gross margin we want to build a £100 million business, with at least 15 per cent EBITDA, within five years.
“YYX Capital will use the team’s expertise that helped develop the likes of Simba, Zoopla, Just Eat, Match.com and others to realise Mahabis’ global potential.”
KRE Corporate Recovery said it received over 70 expressions of interest in buying Mahabis after it went into administration.
Shah will no longer be involved with the business he founded, but he lent his support to the new owners.
“Whilst the decision to go into administration was a difficult one, this was a great outcome for both employees and suppliers,” he said.
“Whilst I now plan to pursue other projects, I hope YYX can propel the brand in new and exciting directions.”
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