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Ssense’s executive team on Wednesday announced internally that a transaction for the company’s founders to retain ownership of the Montreal-based e-tailer was approved by the Superior Court of Quebec, according to a memo viewed by The Business of Fashion.
The closing of the deal, which is still subject to regulatory approval, will allow co-founders Rami, Firas and Bassel Atallah to buy back the embattled company in partnership with a Canadian multi-family office before Ssense emerges from bankruptcy protection.
“This solution allows Ssense to continue its operations,” the company’s executive team said in the internal memo. “It also brings clarity after a period of uncertainty.”
The court approval comes nearly a month after Ssense submitted an application for the transaction to be approved, which was immediately challenged by a group of its creditors, led by the Bank of Montreal, hoping to block the buyout in favour of a liquidation that would let them recover cash. Last September, Ssense received 40 million Canadian dollars ($28.8 million) in interim financing but owes more than $200 million in debt to banks and brand partners, according to court filings.
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The court’s latest ruling ensures the transaction can proceed to the regulatory approval stage.
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Ssense Founders Win Bid to Retain Ownership
The company announced on Sunday that the Atallah family will remain owners of the Montreal-based luxury e-tailer, in partnership with a Canadian multi-family office, in a transaction pending regulatory approval.
