A founder-led buyout of Canadian luxury fashion retailer Ssense has been approved by the Quebec Superior Court and closed on February 13, allowing the business to exit bankruptcy despite opposition from a group of lenders.

The transaction enables founders Rami, Firas and Bassel Atallah to acquire parent company Groupe Atallah Inc. for about 78 million CAD ($57 million), including 59 million CAD ($43 million) in cash. The court rejected efforts by major creditors — including Bank of Montreal, RBC and JPMorgan — to block the deal and push for liquidation, even though they were owed about 113 million CAD ($83 million).

In its ruling, the court cited the offer’s value relative to expected liquidation proceeds, as well as the importance of preserving jobs and maintaining business continuity.

Ssense expects to retain about 660 full-time employees and 100 part-time workers, down from more than 1,160 previously employed. The outcome marks a sharp reversal from Ssense’s peak valuation of about 5 billion CAD in 2021, underscoring the mounting pressures facing online luxury retail.

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