Court Approves SSENSE Buyout Plan, Rejects Lender-Led Liquidation Attempt
The Quebec Superior Court has delivered a significant ruling in favor of the founding brothers of Montreal-based fashion retailer SSENSE, approving their buyout plan despite strong opposition from a group of lenders led by BMO. Justice Andres C. Garin's decision, handed down on February 4, 2026, carefully considered multiple factors but placed particular emphasis on the potential impact on employees.
Employee Protection Takes Center Stage
In his comprehensive judgment, Justice Garin devoted substantial attention to the consequences that liquidation would have on SSENSE's workforce. The court accepted the monitor's assessment that the proposed buyout transaction would preserve a considerable number of jobs, whereas liquidation would result in all employees losing their positions.
"These social and economic consequences extend beyond the employees themselves," Justice Garin wrote in his decision. "Families who lose a source of income are deeply affected. Society in general suffers as well. Not only are tax revenues lost, the state may also be required to expend resources in providing for those who now find themselves without means for supporting themselves."
The judge emphasized that preservation of employment represented a significant consideration weighing in favor of approving the buyout plan proposed by the Atallah brothers.
Lender Opposition Overcome
The BMO-led lender group had mounted a vigorous challenge to the buyout plan, arguing that liquidation represented a safer path to recover the millions in debt owed to them. Their attempt to convince the Quebec Superior Court to dismiss the founders' buyout bid ultimately failed.
This legal challenge came after SSENSE's co-founders—Rami Atallah, Bassel Atallah, and Firas Atallah—announced they had won a bid to maintain control of the company following court approval for restructuring. The brothers had filed for bankruptcy protection the previous summer, allowing the fashion retailer to continue operations while developing a court-supervised plan to repay their debts.
Broader Implications for Business Restructuring
The court's decision establishes an important precedent regarding how employment considerations factor into bankruptcy and restructuring proceedings. By prioritizing job preservation over what lenders argued was a more secure path to debt recovery, the judgment acknowledges the wider social and economic implications of business decisions.
Justice Garin acknowledged uncertainty about exactly how many positions would ultimately be retained under the buyout plan but emphasized that "the counterfactual is well known. In a liquidation, the debtors' employees will lose their positions, entailing significant social and economic consequences."
The ruling represents a significant victory for the Atallah brothers and their vision for SSENSE's future, while providing reassurance to employees about their job security during this transitional period for the Montreal-based fashion retailer.
