Canadian luxury fashion retailer Ssense has slipped into bankruptcy, prompting a battle between its founders and a coalition of lenders led by BMO. The lenders argue that a liquidation sale would return more cash than a founder buyout, and they are now seeking to block the proposed deal in 2024.

Founders aim to keep Ssense operational and preserve its brand equity, while lenders cite the company's mounting debt and uncertain revenue streams. The dispute reflects a broader trend in the fashion sector, where distressed assets often attract competing rescue and liquidation strategies from banks and private investors in 2024 market.

Legal filings now outline the lenders' request to halt the buyout, while the founders seek court approval for a restructuring plan. Analysts predict a protracted negotiation, with potential outcomes ranging from a negotiated sale to a full liquidation that could reshape the Canadian luxury retail landscape in 2024 for future.