Ssense for restructuring, gets $ 40 million in financing to continue work

SSNSE founders won one tour of their battle with their creditors, allowing the company to stay in the hands of CEO Rami Attala and his brothers Ferras and Basil, who are fighting to stay in the field of business and restructure the company’s operations.

At the end of last month, as I mentioned, The disturbed retail dealer in Montreal is the Canadian bankruptcy for bankruptcy Its creditors submitted a request to place retail stores for sale – a process that was directly inconsistent with the restructuring plan developed by the Atallah family.

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On Friday, the court ruled that the current administration team and the company’s board of directors may remain in their place and supervise the restructuring plan. To ensure transparency and accountability, the court appointed Ernt & Young Inc. Work as an observer. As such, Ernst & Young will supervise the restructuring process and maintain a website where information related to procedures can be obtained.

As part of restructuring and demands against Ssense As for the amounts due before August 29, the claims approved by the court will be addressed, while the payments for goods and services submitted after that date “will continue as usual”, using $ 40 million in temporary financing approved by the court on Friday. This number consists of $ 15 million from a group of banks and $ 25 million from the Autala family.

Ssense, which amounted to $ 1.3 billion in last year – $ 1.23 billion of them of online sales – has $ 371 million in debt, with $ 229 million due to banks and sellers. At its peak, after the epidemic, sales amounted to $ 5 billion, according to court papers.

“The court’s decision today is a decisive step, which represents the beginning of the next stage.” Sad Rami Atallah. “With the support of our lenders, we now have the basis for developing and implementing a restructuring plan aimed at securing the long -term future. Our priority still protects our employees, customers and partners, and we are committed to rebuilding our confidence. We are grateful for resources that we cannot arrange through the formula process. The strongest SSENSE.”

Ssenses, which was once a pioneering retail store in luxury and vanguard brands and street clothesSince last year, he was struggling when the upscale market began to show signs of stress. The company has already started more than 100 people, according to the sources, began to discount greatly, and stopped paying deposits to emerging brands. The court papers said that the elimination of De Minimus’s exemption, which allowed goods less than 800 dollars to ship to the US tariff free from customs tariffs, was especially harmful to SSNSE, which concerns 59 percent of its customer base in the United States and has an average size of $ 549.

The company was established in 2003 by The Atallah Brothers and is primarily an e -commerce company targeting men and women between the ages of 18 and 40 years. She now has 1161 world employees, and also runs Montreal.

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