Ssense on Monday was granted a stay order by the Superior Court of Quebec until Dec. 12, giving the Canadian e-tailer more time to restructure its business, including paying off creditors.
This marks Ssense’s third extension since Sep. 12, when it received its original stay order until Dec. 5 after filing for Canada’s equivalency for bankruptcy protection. The company’s original filing followed Ssense’s creditors filing to force a sale and recoup debts owed. The Montreal-based online luxury retailer received 40 million Canadian dollars ($28.8 million) in interim financing, but owes more than $200 million to banks and brand partners, among other vendors, according to documents from Ernst & Young.
“The stay of proceedings will be renewed at regular intervals by the Court, and will be in place until Ssense successfully emerges from CCAA,” an Ssense spokesperson said in a statement.
Ssense is also in the process of fielding potential investment and refinancing bids. The company’s CEO, Rami Atallah, told staffers on Sep. 17 that a sale isn’t off the table and that he and his brothers Firas and Bassel, with whom he co-founded the company in 2004, will place their own bid for the company. Earlier this month, a deadline for qualified bidders was extended to Dec. 8.
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Ssense Founders Join Sale Process for Troubled Retailer
Rami Atallah, chief executive of the embattled e-tailer, told employees on Sep. 17 that his family would be among the bidders in a potential sale, and announced a new round of layoffs.
