SSENSE FILES FOR BANKRUPTCY PROTECTION AMID US TARIFF PRESSURE

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Summary

• Ssense filed for bankruptcy protection after US tariffs severely impacted operations
• Company opposes creditor-led sale under Companies' Creditors Arrangement Act
• Sales dropped 28% in first half of 2025 amid broader luxury market slowdown

Canadian luxury e-commerce platform Ssense has filed for bankruptcy protection following mounting pressure from creditors and unexpected financial strain from US trade policies.

CEO Rami Atallah informed employees that creditors plan to sell the company under the Companies' Creditors Arrangement Act (CCAA), a restructuring procedure similar to bankruptcy proceedings. The company will contest this move by filing its own CCAA application within 24 hours to maintain control of assets and operations.

Both applications will proceed to court, where a judge will determine the company's future path. Atallah expects a decision within the next week.

The Montreal-based retailer attributes its financial troubles primarily to Trump administration trade policies. New 25% tariffs on Canadian imports created significant cost pressures. The elimination of the 'de minimis' exemption, which previously allowed duty-free entry for packages under $800, caught Ssense off guard and directly contributed to the bankruptcy filing.

"We have worked closely with financial and legal advisors to develop a restructuring plan that allows us to stabilize the company and rebuild for the future", Atallah stated in an internal memo.

The bankruptcy filing caps a difficult year for Ssense. The luxury market downturn disproportionately affected its consumer base, mirroring challenges faced by other digital commerce competitors. Consumer Edge data shows Ssense sales declined 28% year-over-year in the first half of 2025.

The company already implemented cost-cutting measures in May, laying off over 100 employees across multiple departments as performance deteriorated.

Ssense built its reputation as a premier destination for high-end fashion and streetwear, serving customers globally through its online platform. The company's struggles reflect broader challenges facing cross-border e-commerce operations amid shifting international trade policies.

The court proceedings will determine whether Ssense proceeds with its own restructuring plan or faces a creditor-directed sale. Management remains focused on protecting company value while navigating the legal process.

Industry observers note that Ssense's situation highlights the vulnerability of international e-commerce businesses to sudden policy changes. The case serves as a warning for other companies heavily dependent on cross-border trade relationships.

The outcome will significantly impact the Canadian luxury retail landscape and provide insights into how fashion e-commerce platforms adapt to evolving trade environments.