Ssense founders’ bid to buy back company successful, pending approvals

Core Insights - Ssense, a luxury retail platform based in Montréal, is nearing a deal to regain control after entering bankruptcy protection in September due to a cash crunch and lender pressure for a quick sale [1][2]. Group 1: Company Background and Financial Situation - Founded in 2003 by the Atallah brothers, Ssense specializes in designer fashion and high-end streetwear, with a valuation of $5 billion in 2021 [4]. - As of September, Ssense reported assets of $387 million against liabilities of $371 million, which included loans and employee vacation pay [4]. - The company experienced declining sales from 2023 to 2025 due to changing consumer luxury habits and rising interest rates, compounded by retail challenges such as the elimination of the de minimis exemption for shipping [4]. Group 2: Bankruptcy Proceedings and Restructuring - Ssense entered insolvency proceedings in September after lenders, including Royal Bank of Canada and Bank of Montreal, sought to place the company under the Companies' Creditors Arrangement Act (CCAA) following a rejected refinancing plan [5][6]. - The company reached an agreement with lenders to secure nearly $40 million in interim financing while undergoing a court-supervised sale process [6]. - The winning bid for the company is from its co-founders and a leading Canadian multi-family office, pending court and regulatory approvals, with the deal expected to close before February 13 [2][3].