Slipper brand Mahabis, known for its removable soles, has been bought out of acquisition by YYX Capital, an investment company co-headed by Simba Sleep founder James Cox.
The move comes after the business called in administrators KRE Corporate Recovery on 27 December and had been forced to cease trading.
Mahabis owed £2.6m to creditors in the 12 months to 30 June 2017, up from £927,000 in the previous year.
The acquisition, agreed with administrators KRE Corporate Recovery, means that all 16 of Mahabis’ staff will be retained and the business will be able to continue trading.
James Cox will become interim chief executive and YYX Capital will invest in developing the Mahabis brand, and help with ecommerce, marketing, communications and on-line and off-line retail channels.
Cox said: “Ankur Shah [founder of Mahasis] and his team have built a great business in Mahabis which unfortunately just stumbled at a critical point. 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.
“Mahabis has never raised any external capital, so with the right backing, we believe we can further grow Mahabis globally, and at speed. Its high margin product category with a large addressable market, both online and offline, and presents exactly the kind of value YYX are looking for.”
Paul Ellison, partner of KRE Corporate Recovery, said: “Once the Administration process started Ankur Shah and his team worked tirelessly to achieve the best possible outcome for creditors which I firmly believe has been achieved. James Cox and YYX Capital showed a real understanding of the business and had a very clear strategy on how to grow Mahabis while retaining its core team and unique corporate culture.”
Shah added: “We achieved an enormous amount in a very short space of time. Whilst the decision to go in to administration was a difficult one, this was a great outcome for both employees and suppliers. Whilst I now plan to pursue other projects, I hope YYX can propel the brand in new and exciting directions.”