Ssense seeks to “safeguard” company from potential sale through creditor protection

Online retailer facing headwinds due to US trade policy, dip in luxury demand.

Montréal-based online fashion retailer Ssense said it would file for protection from creditors to “safeguard” the company from a potential sale by its lenders. 

“We are deeply disappointed in this decision, which we believe does not serve the long-term interests of our 1,000+ employees, vendors, and partners.”

This comes after the e-retailer’s primary lender filed to place Ssense under protection of the Companies’ Creditors Arrangement Act (CCAA) without its consent, the company said in a statement to BetaKit. The CCAA Act allows large companies owing more than $5 million to restructure under court supervision. 

Ssense spokesperson Olive Leatherwood said the company had been working “tirelessly and in good faith” with its lenders to restructure the business as it navigated economic headwinds for retailers. 

“We are deeply disappointed in this decision, which we believe does not serve the long-term interests of our 1,000+ employees, vendors, and partners,” the statement said. 

One of the “significant headwinds” Ssense faces is the elimination of the de minimis exemption, which, before it expired today, allowed shipments worth less than $800 USD to enter the United States (US) duty-free. Direct-to-consumer (D2C) online retailers who sell into the US, including Ssense, now have their goods subject to additional tariffs if they are not covered under existing trade agreements. 

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’s intent to file for creditor protection was first reported by The Business of Fashion, which cited an internal message sent to company staff by CEO Rami Atallah.

The internal memo reportedly said the company would imminently file its own CCAA application to fight a sale, and attempt to keep control over its assets and operations. Atallah said in the memo that Ssense has developed its own restructuring plan and that the court will decide its next steps. 

RELATED: Trade war uncertainty drags on for Canadian tech as US hikes tariffs, changes duty rules

“This process will give us the time and stability we need to restructure on our terms, protect the interests of our employees and partners, and emerge stronger for the future,” Leatherwood’s statement said.

US tariffs and economic uncertainty have contributed to a slowdown in demand for luxury fashion. Multi-brand luxury platforms were 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 among its 18-24 customer age group.

The turmoil continues a difficult period for the online retailer, which was valued at $5 billion in 2021 when US megafund Sequoia Capital took a minority stake. In May, The Logic reported that Ssense had cut eight percent of its staff amid tariff-related impacts, in at least the third round of layoffs in the past year. It previously laid off staff in 2023 amid a post-pandemic online retail downturn. 

Other Canadian tech-enabled retailers have faced bankruptcy this year. Montréal-based brand Frank and Oak closed all its brick-and-mortar stores in May after filing for insolvency in December. It blamed the continued impacts of the COVID-19 pandemic and supply chain issues.

Since February, ongoing uncertainty related to US tariffs has left Canadian D2C businesses struggling to strategize and facing rising costs. Sleep tech startup Smart Nora filed for bankruptcy in July, in part due to fundraising challenges associated with the trade war. The company said a “sharp and unexpected increase in tariffs” negatively affected investor sentiment. 

Feature image courtesy Ssense. 

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