Ssense announce on Monday its co-founders, Rami Atallah, Bassel Atallah, and Firas Atallah will retain control of the Canadian luxury e-commerce platform after the firm filed for bankruptcy protection in September.
Ssense
The founding trio, in partnership with a Canadian multi-family office, have been selected as the successful bid in the Court-supervised Sale and Investment Solicitation Process conducted under the Companies’ Creditors Arrangement Act (CCAA). The parties have entered into a definitive purchase agreement, which is slated to finalise no later than February 13.
“The day-to-day leadership remains unchanged with our existing executive team under the transaction,” the company said in an internal memo.
“This outcome will allow us to provide continuity and stability for our customers, suppliers, partners, and you, our employees.”
The sale follows a troublesome period for Ssense. In May, the company axed 100 positions, as the firm tried to lower overheads amid the luxury slowdown affecting demand for high-price goods, especially more younger, aspirational luxury shoppers — Ssense’s target market.
In September, it filed for Canada’s equivalent of bankruptcy protection, owing more than $200 million in debt to banks and brand partners. The filing also served to fend off a legal manoeuvre by the company’s creditors to force a sale.
Ssense was founded in 2003 by Atallah and his brothers, Firas and Bassel, under the company name, Groupe Atallah Inc. In 2021, the luxury retailer received a minority investment from Sequoia Capital for a post-money enterprise value of more than $3.6 billion, according to an announcement at the time.
