SSENSE Co-Founders Secure Deal to Reacquire Luxury Retailer

The co-founders of the Montreal-based luxury fashion retailer SSENSE have announced their successful bid to buy back the company. On Sunday, SSENSE released a statement confirming that the bid submitted by co-founders Rami Atallah, Bassel Atallah, and Firas Atallah, along with their strategic partner—a prominent Canadian multi-family office—has been selected in a court-supervised sale process under the Companies’ Creditors Arrangement Act (CCAA).

The agreement marks a significant milestone for SSENSE, which filed for bankruptcy protection last summer. This legal framework allowed the retailer to restructure its operations while safeguarding jobs for its employees. The strategic partner involved in the transaction has not been disclosed, and SSENSE did not respond to inquiries regarding additional details.

The definitive purchase agreement represents the final, legally binding contract in the acquisition process. Following a turbulent period marked by financial struggles, the company’s future appears more secure. After its establishment in 2003, SSENSE was valued at approximately $5 billion in 2021 but faced challenges as the e-commerce boom during the COVID-19 pandemic began to decline.

Several factors contributed to SSENSE’s financial difficulties. The retailer cited the removal of a longstanding U.S. trade rule known as the de minimis exemption, which previously allowed goods valued at less than US$800 to enter the United States without duties or taxes. Additionally, a general slowdown in the luxury market has disproportionately affected the company’s younger consumer base, exacerbating its liquidity crisis. The situation intensified when lenders declined to extend or refinance existing loans.

SSENSE stated that the final transaction is contingent upon fulfilling standard closing conditions, including obtaining necessary court and regulatory approvals. If all conditions are met, the closing is anticipated to occur no later than February 13, 2024.

As SSENSE moves forward, the successful bid by its co-founders signals a potential turnaround for the company, which has become a significant player in the luxury fashion retail sector. The outcome of this acquisition will be closely watched by industry analysts and stakeholders as the company seeks to navigate the evolving market landscape.