After filing for creditor protection, Montreal-based luxury fashion brand SSENSE says its co-founders will buy the company back.
According to a news release issued Sunday, brothers Rami Atallah, Bassel Atallah and Firas Atallah and their strategic partner won their bid in the Court-supervised Sale and Investment Solicitation Process (SISP) conducted under the Companies’ Creditors Arrangement Act (CCAA).
While “the parties have entered into a definitive purchase agreement,” final sale hinges on typical closing conditions like court and regulatory approvals.
The company expects the transaction to close by Feb. 14.
SSENSE, founded by the Atallah brothers in 2003, sells high-end clothing and accessories both online and in-store.
Last August, SSENSE claimed its lenders were trying to sell the company without its consent and filed for creditor protection.
In a memo sent to employees, it had claimed the application was meant “to protect the company, retain control of our assets and operations, and defend our future.”
The company also pointed to commercial tensions with the United States and President Donald Trump’s tariffs for its financial hardships.
Aug. 28 was the last day of the de minimus exemption, which allowed packages worth US$800 or less to be shipped to the U.S. duty-free. Higher shipping costs sparked concern for small businesses.
Over the last months, the company laid off about a third of its staff after a “liquidity crisis,” substantial losses and reduced sales.
The company said it could not resolve its issues with short-term solutions and that restructuring under the CCAA was the only way to continue operations.
Montreal-based business strategist Carl Boutet says that while economic certainty is tough in 2026, having the Atallah brothers retain ownership is “excellent news” for the company.
“The continuity part is important because often what happens if it’s not the founders that takes it over, often it will be financial engineers, people who are good at picking apart businesses and not really paying attention to what made them special in the first place,” he told CTV News.
Though some may see SSENSE as being a niche company, Boutet insists it’s a global player in the luxury retail sector in Montreal and beyond.
With files from CTV News’ Olivia O’Malley.
