Ssense Receives Court Approval to Extend its Restructuring Process

Ssense on Friday was granted a stay order by the Superior Court of Quebec until Feb. 19, giving the Canadian e-tailer more time to restructure its business and stave off legal action from lenders and suppliers in the process.

This marks the latest in a series of extensions since Sep. 12, when Ssense received its original stay order after filing for Canada’s equivalency for bankruptcy protection. The company’s original filing followed Ssense’s creditors filing to force a sale and recoup debts owed. The Montreal-based online luxury retailer received 40 million Canadian dollars ($28.8 million) in interim financing, but owes more than $200 million to banks and brand partners, among other vendors, according to documents from Ernst & Young.

“Extensions to the stay of proceedings will continue to be requested, as required, to the Court until Ssense successfully emerges from CCAA [Company’s Creditor’s Arrangement Act],” a company spokesperson said in a statement.

Ssense is also in the process of fielding potential investment and refinancing bids. The company’s CEO, Rami Atallah, told staffers on Sep. 17 that a sale isn’t off the table and that he and his brothers Firas and Bassel, with whom he co-founded the company in 2003, will place their own bid for the company. Earlier this month, a deadline for qualified bidders was extended to Dec. 8.

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Ssense Founders Join Sale Process for Troubled Retailer

Rami Atallah, chief executive of the embattled e-tailer, told employees on Sep. 17 that his family would be among the bidders in a potential sale, and announced a new round of layoffs.