Embattled Montréal-based online fashion retailer Ssense has been granted a stay of proceedings order, temporarily protecting the company from its creditors as it looks to prevent a potential sale.
The temporary shield stems from a creditor protection filing by Ssense’s lenders, which include the Bank of Montreal, the Royal Bank of Canada, Scotiabank, National Bank of Canada, and JPMorgan Chase. The news was first reported by The Logic and has been independently verified by BetaKit.
The stay of proceedings blocks lenders from taking collection actions against Ssense for an initial period of 10 days.
On Aug. 29, Ssense said its primary lender has filed to place the company under protection of the Companies’ Creditors Arrangement Act (CCAA) without its consent, intending to force a quick sale. The CCAA Act allows large companies owing more than $5 million to restructure under court supervision.
The stay of proceedings blocks lenders from taking collection actions against the company or its assets for an initial period of 10 days. An application can be made for an extension, but once the stay expires, the company can be placed into receivership or bankruptcy. Ssense declined to comment on whether the company plans to extend the stay.
The stay also temporarily protects Ssense from having to pay designers, who are technically creditors. Some independent designers who sell through Ssense’s platform told The Montreal Gazette they have not been paid for shipments from months earlier. Some Canadian designers have taken to social media to share similar experiences.
According to Bloomberg, Ssense owes its lenders roughly $145 million. They want the retailer placed under a monitor as specified in the CCAA Act. Bloomberg reported that these creditors had set Oct. 6 as a deadline for non-binding offers.
Ssense told employees it planned to file its own application under the CCAA Act to “safeguard” the brand and intellectual property from being sold. The company said it had been working with lenders for months to restructure the business as it navigated economic headwinds, including rising costs from the elimination of a key US shipping exemption. At the time, the company said it was “deeply disappointed” in lenders’ decision to move forward with the application and potential sale.
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Ssense told employees it planned to file its competing application on Aug. 28, but Canada’s Office of the Superintendent of Bankruptcy confirmed to BetaKit that Ssense has yet to file under CCAA. CEO Rami Atallah reportedly said in the memo to employees that Ssense had developed its own restructuring plan, and that the court would decide its next steps.
While the proceedings go on, independent designers who sell through Ssense’s platform told The Montreal Gazette they are not being paid for shipments from months earlier. Some Canadian designers have taken to social media to share similar experiences.
Founded by brothers Rami, Firas, and Bassel Atallah in 2003, Ssense is an e-commerce retailer specializing in designer fashion and high-end streetwear. The company also creates editorial content that highlights its retailer offerings.
Ssense has barreled towards insolvency in response to US trade policy and economic uncertainty, which has tamped down demand for luxury fashion. According to Bloomberg, Ssense said it had liabilities of $517 million and assets of $420 million as of June 30. The company attributed some of its financial issues to the elimination of the de minimis exemption, which allowed low-value packages to enter the US duty-free.
Multi-brand luxury platforms represented the worst-performing retail category in 2025, with sales down more than 20 percent year-over-year, according to a report from marketing agency Consumer Edge. The report specified that Ssense lost market share among high-income shoppers, but gained slightly in the 18-24 customer age group.
Update (9/9/25): This story has been updated to clarify what a stay of proceedings grants Ssense.
Feature image courtesy Ssense.