A pivotal moment for SSENSE, the e-commerce platform has announced that it has secured court approval for a restructuring plan and has obtained nearly $40 million USD in new financing.

Online retailer to continue under current leadership with $40 million in interim financing. Montréal-based Ssense has reached an agreement with its lenders that will allow the online fashion retailer to continue operations with the support of fresh capital. “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,” Atallah said. “We now have the time, resources, and structure in place to begin the process of rebuilding a stronger SSENSE.” The company said it received approval from the Québec Superior Court on Sept. 12 to move forward with a restructuring plan under the Companies' Creditors Arrangement Act (CCAA), staving off a potential quick sale by its lenders. The agreement allows Ssense to continue operations under its leadership team with nearly $40 million in interim financing, according to a filing viewed by BetaKit. In a statement, Ssense co-founder and CEO Rami Atallah said the court decision was “a critical step, marking the beginning of our next phase.” The court filings show Ssense had assets of $387 million against liabilities of $371 million. The new restructuring plan includes interim financing, including $15 million collectively from Ssense's bank lenders, and $25 million from the company's founders. Ssense's lenders include the Bank of Montreal, the Royal Bank of Canada, Scotiabank, National Bank of Canada, and JPMorgan Chase. Ernst & Young is the court monitor appointed to supervise the restructuring. Founded by brothers Rami, Firas, and Bassel Atallah in 2003, Ssense is an e-commerce retailer specializing in designer fashion and high-end streetwear with roughly 1,100 employees. The company also creates editorial content that highlights its retailer offerings. Persistent liquidity issues had put Ssense and its lenders at odds. According to the filing, Ssense hired investment banking firm Greenhill in July to develop a restructuring plan that would satisfy lenders and allow the business to continue operating. But Ssense's lenders said they couldn't agree to the refinancing plan. On Aug. 24, roughly $135 million of loans to Ssense matured, and lenders went forward with their own application to place Ssense under the protection of the CCAA Act and force a sale without the company's consent on Aug. 27. In a statement on Aug. 29, an Ssense spokesperson said they were “deeply disappointed” with the lenders' decision and planned to fight for the company's future with its own CCAA application. The two parties reached an agreement on Sept. 6 “after intensive discussions and negotiations,” according to the filing. The court filings show Ssense had assets of $387 million against liabilities of $371 million. Those liabilities include more than $135 million in loans to its lenders, $3.2 million in vacation pay for employees, and $93 million to trade creditors, suppliers, and others. There's also a $21-million loan to Investissement Québec in 2021 for equipment at Ssense's fulfillment centre in Saint-Laurent, Que. A spokesperson for Ssense told BetaKit that the court has granted the company a 30-day stay period, during which it is protected from collection actions by creditors. According to the filing, the stay period will end on Oct. 20. The stay of proceedings blocks lenders from taking collection actions against Ssense. It also temporarily protects Ssense from having to pay designers, some of whom reportedly have not been paid for shipments from months ago. However, Ssense was granted court permission to honour customers' online purchases. The resolution comes after a difficult period for the online retailer, which was valued at $5 billion in 2021 when US megafund Sequoia Capital took a minority stake. Ssense claimed in the filing that sales decreased between 2023 and 2025 as consumer habits changed and interest rates rose. According to the filing, the company reported net losses of $123 million in 2022, $67.7 million in 2023, and $132 million in 2024. Its revenue in 2024 was $1.3 billion. This left the online retailer with a “significant amount” of unsold inventory, it said, and it took the following cost-cutting measures: reducing brand purchases with lower gross margin contributions, marking down pandemic-era inventory that hadn't sold, and lowering advertising expenses through “proprietary algorithms.” Ssense also laid off nearly 350 employees between January 2023 and May 2025, eliminated evening shifts and increased the use of “cross-functional shifts” for half of its staff. Ssense claimed this helped save $36 million in fiscal year 2025. To cut costs further, Ssense froze base salaries and modified parental leave policies. Retail headwinds got stronger this year as Ssense faced the elimination of the de minimis exemption . Before it expired in August, this loophole allowed shipments worth less than $800 USD to enter the United States (US) duty-free. According to the filing, 59 percent of Ssense's sales are in the US, with a gross average value of $549. The company still faces liquidity issues, the filing said, making the restructuring plan “necessary” to stabilize operations. The company will also pursue a sale and investment solicitation process (SISP) to explore opportunities for sale, investments, or financing. Feature image courtesy Ssense.

Haein Dorin has been promoted from Global Head of Partnerships & Community to Global Head of Marketing at luxury fashion retailer, SSENSE.