The co-founders of Montreal-based luxury fashion retailer SSENSE have taken a decisive step toward regaining full control of the company, following a court-supervised restructuring process under Canada’s Companies’ Creditors Arrangement Act. The company confirmed Sunday that the bid submitted by co-founders Rami Atallah, Bassel Atallah, and Firas Atallah, alongside an unnamed strategic partner, has been selected as the successful offer in the sale and investment solicitation process.
In a statement, SSENSE said it had been notified by the court-appointed monitor that the consortium’s bid was approved and that the parties have entered into a definitive purchase agreement. Such an agreement represents the final, legally binding contract governing the acquisition of the business. The strategic partner was described only as a leading Canadian multi-family office, and no further details were disclosed.
Restructuring Followed Liquidity Crisis and Lender Pressure
SSENSE filed for creditor protection last summer after encountering what it described as an immediate liquidity crisis. At the time of its CCAA filing, the company was carrying hundreds of millions of dollars in liabilities and faced imminent loan maturities it could not meet. The restructuring process allowed SSENSE to continue operating while seeking a solution that preserved the business and its workforce, rather than proceeding with a forced sale pursued by its primary lenders.
Court filings indicated that nearly $135 million in loans had come due in late August 2025, a situation that management said could not be resolved through refinancing or extensions. Interim financing was approved during the process, enabling the retailer to maintain operations while negotiations continued.
From Pandemic Highs to Post-Boom Pressures
Founded in 2003 as a digital-first luxury platform, SSENSE emerged as a global destination for high-end, avant-garde, and streetwear fashion. The company reached a reported valuation of approximately $5 billion in 2021, benefiting from the surge in online luxury spending during the COVID-19 pandemic. However, the subsequent normalization of e-commerce demand, combined with broader weakness in the luxury sector, placed sustained pressure on the business.
SSENSE generated roughly $1.3 billion in revenue in 2024, but sales declined sharply in 2025 as discretionary spending softened. The company remained heavily exposed to the U.S. market, which accounts for close to 60 percent of its revenue, amplifying the impact of macroeconomic and policy shifts south of the border.
Trade Policy and Market Conditions Compounded Challenges
Among the factors cited by SSENSE for its financial distress was the elimination of the U.S. de minimis exemption, a longstanding trade rule that had allowed goods valued under US$800 to enter the United States without duties or taxes. The policy change materially increased costs for U.S.-bound shipments, directly affecting SSENSE’s core customer base and contributing to declining order values and weaker margins.
At the same time, a general slowdown in the global luxury market disproportionately affected younger consumers, who form a key segment of SSENSE’s audience. Inventory imbalances and discounting further strained profitability, while lenders declined to extend or refinance existing debt, triggering the company’s liquidity crisis.
Closing Expected by Mid-February
SSENSE said the transaction remains subject to customary closing conditions, including court and regulatory approvals. Assuming those conditions are met, the company expects the transaction to close no later than February 13.
The successful bid by the founding family marks a pivotal moment for SSENSE, preserving founder-led ownership and operational control following months of uncertainty. As the restructuring process nears completion, attention will turn to whether the company can stabilize its finances and adapt its business model to a materially changed luxury retail environment.
