SSENSE: the final stay, and $5.5 million more for the banks

On May 11, 2026, at a hearing that lasted six minutes, Justice Luc Morin of the Superior Court of Québec extended the SSENSE stay of proceedings to September 11. "This CCAA proceeding has been challenging by any measure; however, it now appears to be nearing its conclusion," the minutes read. "In practical terms, this extension should be the final stay of proceedings." The monitor had said it needed the time to finish certain transition services, collect receivables and seek a final distribution order, per the Minutes to May 11th, 2026 Hearing and Stay Extension Order, May 11, 2026, p. 2.

On September 11, Justice Morin extended the stay again, to November 13, 2026, on the monitor's application, per the Stay Extension Order, Sept. 11, 2026. The reasons given this time are the same three and two more: a seized bank account in Belgium, and to "avoid a return to Court for the sole purpose of obtaining a further extension of the stay of proceedings," per the Eighth Report of the Monitor, Sept. 9, 2026, para. 54. The same day, the court authorized a second distribution to the banks.

Where the money came from

The debtors — Atallah Group Inc. and five affiliates, doing business as SSENSE, the Montréal luxury e-commerce retailer — went into CCAA in September 2025 after their lending syndicate declined to refinance. The relaunched sale process drew two binding offers in December: one from "a group comprised of the Founders and First Avenue Advisory Inc.," and one from Cettire Limited, per the Fourth Report of the Monitor, Jan. 14, 2026, para. 55. The monitor recommended the founders' group. Among its reasons were certainty of proceeds against a liquidation value that was "purely theoretical given that no liquidator submitted an offer in the SISP," and the continued employment of approximately 760 people, with the assumption of approximately $3.1 million in accrued vacation pay, per the Fourth Report of the Monitor, Jan. 14, 2026, paras. 63.2.1, 63.3.

The lending syndicate — Bank of Montreal as administrative agent, Royal Bank of Canada, JP Morgan Chase Bank, N.A., Toronto Branch, National Bank of Canada, The Bank of Nova Scotia and JP Morgan SE — contested the sale and asked the court to order a liquidation instead. After a four-day contested hearing, the court approved the sale on February 4, 2026, and it closed on February 13, with the rights under the purchase agreement assigned to 17667884 Canada Inc. and the price paid to the monitor in trust, per the Application for the Issuance of a Distribution Order, Apr. 8, 2026, para. 15 and the Application for the Issuance of a Second Distribution Order and a Stay Extension Order, Sept. 8, 2026, paras. 6–7. The purchase price has not been disclosed in the public record.

As of April 8, the principal owing under the syndicated facilities was $106,278,342 on the revolving facility and $28,571,428 on the term facility, per the Application for the Issuance of a Distribution Order, Apr. 8, 2026, para. 31. The first interim distribution, authorized on April 14, was $33,307,000, paid on May 1, per the Eighth Report of the Monitor, Sept. 9, 2026, para. 50.

The second distribution

The monitor's application of September 8 proposed $4.5 million — "the entirety of the balance held by the Monitor less an amount to be retained by the Monitor as a reserve for the professional fees and disbursements, and other costs, that will be incurred to complete the CCAA Proceedings and the eventual bankruptcy of the Canadian Debtors." It also asked that the syndicate be allowed to sweep two blocked Bank of Montreal accounts, since the debtors cannot initiate transfers from them, per the Application for the Issuance of a Second Distribution Order and a Stay Extension Order, Sept. 8, 2026, paras. 28–30. The reserve is not quantified.

The next day the number rose. "The proposed distribution amount of $5.5M (compared to the $4.5M proposed in the Application) reflects the collection of an additional tax refund of approximately $1M since the filing of the Application," per the Eighth Report of the Monitor, Sept. 9, 2026, paras. 44.2, 51–52. Net cash flow for the 17 weeks to August 28 had run $1.3 million ahead of budget, with sales tax refunds above projections, and after the distribution the forecast has the estate closing November 13 with approximately $0.4 million.