Beauty firm collapses owing creditors £1.9m

A WELSH beauty brand which created a global customer base via TikTok has collapsed into liquidation after experiencing financial difficulties and leaving creditors owed nearly £2m.

- SION BARRY Business editor

Llantrisant-based Mallows Ltd, which traded as Mallows Beauty, was set up by Laura Mallows, from Cowbridge, in 2019, selling cruelty-free vegan skincare and body products.

At its height, the business was generating annual sales of nearly £5m and employed a team of 25.

However, due to trading difficulties it voluntarily entered liquidation, with the Cardiff office of insolvency practice Menzies appointed liquidators.

A statement of affairs is expected to be lodged shortly with Companies House showing the entire list of the 57 creditors who are owed £1.9m. The biggest creditor is the Development Bank of Wales, to the tune of £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 was sold to fashion brand Skinnydip London. Other creditors include HMRC, owed £150,000, HSBC, owed £140,000, and TikTok, owed £74,000.

Ms Mallows was the sole shareholder of the business.