Ssense seeks bankruptcy protection to block creditor-led sale

Canadian e-commerce platform Ssense has filed for bankruptcy protection. The company is said to be submitting an application under Canada’s Companies’ Creditors Arrangement Act (CCAA), SSense confirmed in a statement to FashionUnited on Friday.

The CCAA is a federal law comparable to bankruptcy protection that allows corporations to restructure their finances. It applies to insolvent corporations owing creditors more than five million US dollars and provides a legal framework to reorganize debts while continuing operations.

According to the statement, the company’s primary lenders are seeking to put Ssense up for sale under the CCAA. In response, chief executive Rami Atallah said Ssense will oppose a sale by filing its own CCAA application within 24 hours “to protect the company, keep control of our assets and operations, and fight for the future of the company” .

Further it explained that the company has been working closely with financial and legal advisors to stabilize operations and prepare for a long-term rebuild. A court decision on whether Ssense can move forward with its own plan or face a creditor-led sale is expected within the week. Atallah has nonetheless emphasized that the company will continue normal operations and that employees will keep receiving their salaries and benefits throughout the restructuring process.

Tariffs to blame for financial troubles?

The Montreal-based retailer’s financial struggles have been compounded by shifting trade policies in the US. The company pointed to the Trump administration’s 25 percent tariffs on Canadian imports and the end of the de minimis exemption, which previously allowed duty-free entry of goods under 800 US-dollars, as key factors in its insolvency filing.

The past year has been particularly challenging for Ssense, as a slowdown in the luxury market has disproportionately affected its predominantly young and aspirational customer base. Business of Fashion reported that the retailer’s sales fell 28 percent in the first half of 2025 compared to the previous year. The outlet also noted that Ssense laid off more than 100 employees in May, representing about 8 percent of its workforce at the time.