Ssense Founders Successfully Navigate Court Approval for $78 Million Buyout
The founders of Canadian luxury fashion retailer Ssense have successfully obtained court approval for a founder-led buyout, marking a significant milestone in the company's restructuring efforts. Despite facing opposition from a group of lenders who sought to block the deal and push for liquidation, the Quebec Superior Court has given the green light to the transaction that closed on February 13, 2026.
Lender Opposition Overcome Through Judicial Process
In a February 4 decision, Justice Andres C. Garin of the Quebec Superior Court dismissed attempts by a consortium of lenders to block the transaction that allows the Atallah brothers – Rami, Firas, and Bassel – to purchase Ssense's parent company, Groupe Atallah Inc., out of bankruptcy protection. The lender group included some of Canada's largest financial institutions: Bank of Montreal, Royal Bank of Canada, JPMorgan Chase & Co., National Bank of Canada, and Bank of Nova Scotia.
These institutions were owed approximately $113 million as first-ranking creditors, with additional debts including tens of millions owed to RBC for an automation system in the fulfillment center and $21 million to Investissement Quebec for the same system.
Financial Details and Employment Preservation
The founders' successful bid amounted to about $78 million, which included a cash payment of $59 million. According to court documents, this transaction was deemed to represent a higher value than the net liquidation value of the company's inventory. The purchase encompasses nearly all of the debtors' assets, including inventory and accounts receivables, with the exception of equipment subject to leasing agreements with RBC.
"After months of uncertainty, the closing of the transaction marks an important milestone and affirms our ability to continue building Ssense for the long term," the company stated in an official communication.
The approved deal is expected to preserve approximately 660 regular employees and 100 occasional on-call employees from the more than 1,160 people Ssense employed last year. In his decision, Justice Garin considered not only the financial aspects but also the broader implications, noting that "families who lose a source of income are deeply affected" and that "society in general suffers as well" from significant job losses.
Historical Context and Valuation Shift
The current $78 million valuation represents a dramatic shift from Ssense's peak valuation of $5 billion in 2021, when Sequoia Capital made a minority investment in the family-run Montreal business. The company, founded in 2003 by the Atallah brothers, transformed from a minimalist website into a premier luxury destination for shoppers seeking everything from Stella McCartney's balloon trousers to obscure Japanese avant-garde labels.
Extensive Sale Process and Professional Oversight
Court records reveal that the sale process was comprehensive and competitive. A teaser was sent to 170 potential parties, with 51 signing non-disclosure agreements to participate further. In the final round, Australia-based Cettire Ltd. submitted a bid that was ultimately rejected in favor of the founders' offer.
Ernst & Young LLP served as the court-appointed monitor throughout the proceedings, with their mergers and acquisitions team managing the entire sale process. The company, which conducts most of its business online, maintains a physical retail location in Montreal's tourist-heavy Old Port neighborhood and operates a distribution center in a nearby suburb.
This judicial approval represents a crucial turning point for the luxury retailer, allowing the original founders to regain control and continue operations while preserving hundreds of jobs and maintaining commercial relationships that would have been disrupted through liquidation.
