The Canadian e-commerce platform Ssense remains in the hands of the founders for the time being. CEO Rami Atallah as well as his brothers Firas and Bassel Atallah have achieved success in the first round of their legal dispute with the creditors. This allows you to continue to check the business operations and advance the realignment of the company under your leadership, as report several media, including WWD and The Business of Fashion (BOF).
At the end of the past month, the creditors had submitted an application to sell the company on the inside of Ssense. As a result, Ssense himself applied for creditor: internal protection under Canadian law – comparable to insolvency proceedings – in order to continue the operation under the control of the start -up family and implement your own restructuring plan.
A responsible court in Québec, Canada, has approved Ssense’s application for a procedure according to the Canadian creditor: Interior Protection Act (CCAA). The law protects the company for 30 days from enforcement measures by creditors: inside and allows the current management and the board to monitor the implementation of the restructuring plan. To ensure transparency and control, the court used the auditing company Ernst & Young as a monitor that accompanies the process and publicly provides information.
The approved interim financing of $ 40 million is made up of $ 15 million from a banking consortium-including Bank of Montreal, Royal Bank of Canada, Scotiabank, National Bank of Canada and JPMorgan Chase-as well as $ 25 million from the Atallah family. Claims for payments that arose before August 29 will be regulated in the context of a court -approved procedure, while payments for goods and services provide regularly after this date.
Fashionunited asked Ssense to comment.