Ssense founders reportedly join sales process, second round of job cuts initiated

A new report has suggested that the co-founders of Ssense have stepped in with a bid to potentially purchase the embattled e-tailer. According to an internal announcement seen via video and reported on by Business of Fashion (BoF), brothers Rami, Firas and Bassel Atallah have entered the sales process for the company they jointly launched back in 2003.

The announcement was made during an internal meeting, at which Rami Atallah said: “Our family intends to participate as one of the bidders, and our bid will be evaluated under the same rules and oversight as all other bidders.” He added that the court would ultimately determine which proposal was best for Ssense’s future.

In the meeting, Atallah also announced another round of layoffs, an attendee told BoF. This adds to the 100 job cuts already initiated earlier this year. It is understood that, following the meeting, Ssense placed employees on a temporary layoff, which will allow the company to avoid paying severance in the near term.

Impacted employees, some of whom may be rehired in the coming months if deemed viable by the business, were provided applications for employment insurance, Canada’s form of unemployment. Those who are let go will receive severance.

The news comes just shortly after the Canadian firm secured approval from the Superior Court of Quebec to receive support under the Companies’ Creditors Arrangement Act (CCAA), a form of bankruptcy protection that prevents a sale by creditors. With this, Ssense was granted 40 million dollars in interim financing to help with mounting debts.

Ssense initially pursued bankruptcy proceedings late August, at which time it had cited shifting trade policies in the US as contributors to its financial struggles. The Trump administration’s 25 percent tariff hike and the end of the de minimis exemption, which had allowed low-value goods to enter the US duty-free, were highlighted as key factors in its case filing.

FashionUnited has contacted Ssense with a request to comment.