A Welsh beauty brand, which created a global customer base via the reach of TikTok, has collapsed into liquidation after experiencing financial difficulties.
Llantrisant-based Mallows Ltd, which traded as Mallows Beauty, was set up by Laura Mallows from Cowbridge in 2019 selling a range of vegan, cruelty-free skincare and body products.
At its height the business, which sourced products from wholesale suppliers, was generating annual sales of nearly £5m and employed a team of 25. Its products were sold by leading retailers, including Oliver Bonas, Beauty Bay and Superdrug.
However, due to trading difficulties, it voluntarily entered liquidation with partners based at the office of insolvency practice Menzies, Bethan Evans and John Cullen, being appointed joint liquidators.
A statement of affairs is expected to be lodged shortly with Companies House with details on the 57 creditors, who are collectively owed £1.9m. The biggest creditor is the Development Bank of Wales which is owed £1.12m.
The Welsh Government-owned bank provided debt support which came with a charge over the assets of the business. Prior to entering liquidation the IP, effectively the brand name, was sold to fashion brand Skinnydip London. Other creditors include HMRC, which is owed £150,000, HSBC, through asset finance, £140,000 and TikTok £74,000.
What creditors will get back from the liquidation process, where remaining stock is being sold, is yet to be determined. However, it is unlikely that any of the unsecured creditors will get a dividend. Ms Mallows was the sole shareholder of the business.
In a statement Menzies said: “As a result of financial constraints the company ceased to trade and the remaining employees were made redundant. The board of directors engaged Bethan Evans and John Cullen of Menzies to assist them with placing the company into creditors’ voluntary liquidation and were subsequently appointed joint liquidators of the company on November 27th.
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"The liquidators’ role is to work for the benefit of creditors as a whole, to realise and distribute assets and make enquiries into the failure of the business and the conduct of the directors.”
A spokesperson for the Development Bank of Wales said: “We have supported Mallows Beauty with funding to help grow the brand and create jobs as a Wales-based business. Running a business isn’t easy and we know that Laura and the board tried their very best to make a success of Mallows.”
The bank had initially indicated it had backed the company with debt and equity, but clarified by saying: "Our investment in Mallows Beauty was debt with warrant meaning that we had the option to convert into equity. The proceeds from the sale of the company assets, and therefore any return on our investment, will be distributed to creditors in due course according to statutory priority. This process is being handled by Menzies as the appointed liquidators.”
In one of a series of recent TikTok video posts Ms Mallows, 34, said she was devastated at the collapse of her business. She has taken up a new role as a creative director with Skinnydip overseeing their recently acquired Mallows Beauty brand.
On the rise and fall of her company she also told followers: “A lot has happened over the last six years. Having started Mallows Beauty on my kitchen table and borrowing £600 on my parents’ credit card, I had absolutely no idea what I was doing and didn’t know how hard it would be. I just wanted to create a fun brand about body positivity, skin positivity, mental health, self-love, and create amazing products.
"I didn’t expect it to grow as fast as it did, or to go as far as it did, I never wanted to be famous. I never wanted to be the face of a brand.”
She added: “This year has been especially tough. I always try to be positive online and rise above the negativity and try not to lean into it too much and talk about all the things that kept me down. But I think by doing that I’ve kind of lost my authenticity and lost my voice. I’ve really struggled with online abuse and bullying.
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"It seems that we’ve learned nothing from Caroline Flack and being kind. People seem to believe everything they see online. I’ve been backstabbed and betrayed by so many people, and it’s really affected me mentally, my decision making and belief in Mallows Beauty. I underestimated how hard it would be to run a business and underestimated how hard it would be to grow a business.”
While successfully selling two million products she added :“I have also made loads of mistakes, and some of them have been catastrophic. And this year we’ve faced those challenges, but as much as people have let me down, I’ve also let a lot of people down and I’ve failed.
"I don’t think business is what people think it is from the outside...I think I spent way too much time doing the things I was awful at and I kind of stopped developing products to some degree because I was focusing on worrying about everything.”
She added: “But with every failure there is growth, and every failure is a new chapter.”