Ssense founders join sale process for fashion retailer

Montreal-based fashion e-tailer Ssense remains up for grabs - though its founding family isn’t ready to give up without a fight.

During a meeting on 17 September, co-founder and CEO Rami Atallah told employees that a sale is still very much on the table. However, he and his brothers, Firas and Bassel - who co-founded the company with him in 2003 - plan to submit their own bid to try and retain control.

"Our family intends to participate as one of the bidders, and our bid will be evaluated under the same rules and oversight as all other bids," Atallah said, according to a video obtained by The Business of Fashion. "Ultimately, the court will determine which proposal is best for the company’s future."

The news comes after Ssense was granted creditor protection by the Superior Court of Quebec under the Companies’ Creditors Arrangement Act (CCAA) - Canada’s equivalent of bankruptcy protection.

The court’s decision blocked an earlier attempt by creditors to force a sale and approved $40 million in interim financing, allowing Ssense time to seek external funding or consider a strategic sale.

Lenders, including the Bank of Montreal, Royal Bank of Canada, JPMorgan Chase & Co., National Bank of Canada, and Bank of Nova Scotia, had requested court approval to pursue a quick sale process. In their filing, the creditor group stated: "At this stage, the lenders have lost confidence in Ssense’s ability to manage its operations."

Ssense’s financial troubles stem from several factors, including a sharp slowdown in the luxury retail market - especially among its core demographic of young, aspirational consumers - and the lingering effects of US trade policy changes under the Trump administration.

Specifically, the removal of the "de minimis" exemption, which had previously allowed packages under $800 to enter the US duty-free, significantly impacted the company’s cross-border sales.

Ssense has admitted the policy change caught it off guard and was a major factor in its decision to seek court protection.

Founded in 2003 by the Atallah brothers, Ssense built its reputation by blending established and emerging luxury fashion brands with a forward-thinking editorial approach. Headquartered in Montreal, the company grew into a global player, particularly popular among digitally native luxury shoppers.