Ssense Founders to Retain Ownership of Business

Core Insights - The founders of Ssense have successfully acquired the business out of bankruptcy, defeating a group of lenders advocating for liquidation [1] - The deal was finalized on February 13, following a court's acceptance of the founders' bid in mid-January [1][2] Company Overview - Ssense, founded in 2003 by the Atallah brothers, operates primarily as an e-commerce platform targeting consumers aged 18 to 40, with one physical store in Montreal [2] - The company filed for bankruptcy last fall, prompting creditors to seek a sale while the Atallah family proposed a restructuring plan [2] Restructuring Process - In September, a court allowed the current management team to remain in place for the restructuring, appointing Ernst & Young as the monitor and securing $40 million in interim financing [3] - The founders initially offered $20 million to buy back the business, which was deemed unacceptable, leading to a revised bid of $58.5 million along with the assumption of $18.2 million in liabilities, totaling an offer value of $78 million [4] Bid Evaluation - Although the monitor considered the second bid low, it was viewed as the best option for stakeholders, ensuring business continuity and retaining a significant portion of the 760 employees [5] - The founders' bid exceeded the estimated liquidation value of $49 million to $54 million, which would have been generated through inventory liquidation by Gordon Brothers, retained by the lenders [6]