Ssense Avoids Company Sale With $40M Restructuring Plan
Ssense Avoids Company Sale With Approved $40M Restructuring Plan
The downfall of online retailer Ssense has been thwarted.
According to WWD, the company has received court approval to implement a restructuring plan totaling $40 million. The cash injection comprises $15 million from a collective group of its bank lenders and another $25 million from the company’s founders.
Ssense’s current management team and board of directors will remain at the top of the company, but Ernst & Young Inc. will act as overseers to ensure everything is above board.
Founding brothers Rami, Firas, and Bassel Atallah —led by Rami—, put their money where their mouth is to remain in control of the family business he started in 2003, and are ready to refocus their attention on the customers and protecting their employees.
“Today’s court decision is a critical step, marking the beginning of our next phase,” said Rami Atallah after the decision. “With the support of our lenders, we now have the foundation to develop and implement a restructuring plan aimed at securing Ssense’s long-term future. Our priority remains protecting our employees, customers, and partners, and we are committed to rebuilding their trust. We are grateful for the unwavering support of our community, which reinforces our global relevance and the strength of our brand. We now have the time, resources, and structure in place to begin the process of rebuilding a stronger Ssense.”
At its peak, Ssense was valued at $5 billion in 2021, but its downturn led to the company struggling financially. While the founders wanted to restructure and keep control of the company under the Companies’ Creditors Arrangement Act (CCAA), its primary lenders wanted to put the company up for sale.
Ssense was already having a tough year after a layoff of about 100 staffers, mostly blamed on changes in foreign shipping policies and tariffs.
When the news broke in August, fashion heads were more concerned with a potential fire sale if the company went out of business. See those reactions below.
