Ssense, the online luxury retailer, is navigating challenging waters but has received a temporary reprieve from the Superior Court of Quebec. They’ve been granted a stay order until Feb. 19, allowing them time to restructure their business and avoid immediate legal disputes with lenders and suppliers.
This is just the latest in a series of extensions initiated since September 12, after they filed for the Canadian equivalent of bankruptcy protection. The original filing came on the heels of creditors attempting to enforce a sale to recover debts owed by the company. Documents from Ernst & Young reveal that, while Ssense has secured 40 million Canadian dollars (approximately $28.8 million) in interim financing, they remain heavily in debt, owing over $200 million to banks, brand partners, and various vendors.
A spokesperson for Ssense stated, “Extensions to the stay of proceedings will continue to be requested, as required, to the Court until Ssense successfully emerges from CCAA [Company’s Creditor’s Arrangement Act].” This commitment illustrates their determination to navigate these turbulent times successfully.
Additionally, Ssense is exploring opportunities for investment and refinancing. Company CEO Rami Atallah informed staff on September 17 that they are not ruling out a sale and that he, alongside his brothers Firas and Bassel—co-founders since 2003—would be placing their own bid for the business. Recently, the deadline for qualified bidders has been extended to December 8.
