News Summary

Montréal-based online fashion retailer Ssense has reached an agreement with its lenders to proceed with a restructuring plan following court approval from the Québec Superior Court. This plan is designed to secure the company’s long-term future and is backed by $40 million in interim financing. Founded by the Atallah brothers in 2003, Ssense specializes in high-end streetwear and designer fashion. The company has faced significant liquidity issues, with assets of $387 million against liabilities of $371 million. The restructuring includes a $15 million contribution from bank lenders and $25 million from the founders. Despite previous disagreements, Ssense and its lenders agreed on the plan after intensive negotiations. The company has been granted a 30-day stay period, protecting it from creditor actions until October 20. Ssense continues to face challenges like unsold inventory and changing consumer habits, leading to net losses in recent years. The restructuring aims to stabilize operations and explore potential sale or investment opportunities.