Montreal-based luxury e-tailer Ssense has filed for bankruptcy protection under Canada’s Companies’ Creditors Arrangement Act (CCAA). The move follows a push by creditors to force a sale of the company. Ssense intends to file its own CCAA application to maintain control of its assets and operations while it restructures.
Key Takeaways
- Ssense is filing for bankruptcy protection in Canada.
- Creditors reportedly initiated a process to sell the company.
- Ssense attributes its financial difficulties partly to US trade policies and tariffs.
- The closure of the US "de minimis" exemption is cited as a significant factor.
- The company plans to continue operations during the restructuring process.
Financial Strain and Creditor Action
Ssense’s Chief Executive Rami Atallah informed employees that creditors sought to place the company under CCAA protection, a process similar to Chapter 11 bankruptcy in the US, which allows for financial restructuring. In response, Ssense plans to file its own CCAA application within 24 hours to safeguard the business, retain control, and fight for its future. Atallah stated that the company has been working with financial and legal advisors to develop a restructuring plan.
Impact of Trade Policies
Atallah pointed to the Trump administration’s trade policies as a major contributor to Ssense’s financial difficulties. Specifically, the imposition of 25 percent tariffs on goods imported from Canada and the closure of the "de minimis" exemption, which allowed packages under $800 to enter the US duty-free, have significantly impacted the company. The change to the de minimis rule was described as a "surprise" and a direct cause for the CCAA application, set to take effect on Friday.
Broader Market Challenges
The CCAA filing occurs during a challenging period for Ssense, which has been affected by a slowdown in the luxury market that has disproportionately impacted its younger consumer base. Sales reportedly fell by 28 percent year-over-year in the first half of 2025. The company had already implemented cost-saving measures, including laying off over 100 employees in May.
Continued Operations
Despite the bankruptcy filing, Ssense intends to continue operating as usual, maintaining salaries and benefits for its employees until further notice. The company expressed disappointment with the creditors’ decision, believing it does not serve the long-term interests of its employees, vendors, and partners. The outcome of the CCAA proceedings will determine the company’s path forward.
Sources
- Ssense to File for Bankruptcy Protection After Creditors Push for Sale, The Business of Fashion.
- Ssense files for bankruptcy protection under weight of tariffs, Vogue Business.
