Montreal online high-end retailer Ssense has sought bankruptcy protection, taking action to protect itself from growing creditor pressure to sell the business.
In a memo to employees, chief executive Rami Atallah confirmed lenders are asking to put Ssense on the block for sale under the Companies’ Creditors Arrangement Act (CCAA), a Canadian law that enables companies to restructure debt while keeping business running. Ssense will respond by submitting its own CCAA application within 24 hours in order to keep control of its assets and operations, Atallah said.
“Our focus remains clear: protect value, stabilize the business, and set up a restructuring plan to secure our future,” Atallah told employees in the memo reviewed by The Business of Fashion. He emphasized that the company has been working with financial and legal advisors to prepare its own restructuring plan and expects the court to decide on the path forward within the week.
Atallah blamed Ssense’s move to seek bankruptcy protection on a large part to trade policies implemented under the Trump administration. The memo cited 25 percent tariffs on Canadian imports as well as the abrupt shutdown of the decades-long “de minimis” exemption, which had allowed packages worth under $800 to enter the US duty-free. The policy shift, which goes into effect Friday, delivered what Atallah characterized as a “surprise blow” to Ssense’s business model.
The action follows a challenging time already for the e-tailer. Ssense, which is known to carry high-end designer fashion to a younger aspirational customer, has been affected by the wider luxury slowdown that has hit the sector hard during 2025. Consumer Edge credit and debit card data reports the company’s sales down 28 percent in the first six months of the year. In May, Ssense cut more than 100 workers from various departments in a bid to reduce costs.
Despite financial woes, Atallah reassured personnel that Ssense would run business-as-usual during the restructuring phase. Staff salaries and allowances will continue to be paid for the time being.
“We are here today because the rules of the game have changed,” wrote Atallah. “What is next is in the hands of the CCAA proceedings, but our resolve is strong. Now more than ever, we require focus and commitment.”
The CCAA filing represents a key inflection point for Ssense, as the business seeks to stave off forced sale and forge its own path through restructuring. The result of the court’s decision within the next few days will decide whether one of Canada’s best-known luxury online fashion brands will be able to weather this storm.
Jamie Wells has a knack for getting the inside scoop on Hollywood’s biggest stars and up-and-coming talent. With a sharp eye for industry trends and an ear for viral moments, Jamie covers everything from red-carpet events to behind-the-scenes drama in movies, TV, and celebrity culture.
