Ssense, the luxury e-tailer based in Montreal, will file for protection under Canada’s Companies’ Creditors Arrangement Act, an equivalent of bankruptcy protection.
Founded in 2003 by the brothers Rami, Bassel and Firas Atallah, Ssense will use the protection to “safeguard the company, retain control of our assets and operations, and fight for the future of this business,” a spokesperson for the company said in an email.
The move, according to the spokesperson, follows action by Ssense’s primary lender, which placed the retailer under CCAA protection and initiated a sale process “without our consent” — a step the company said had left it “deeply disappointed.”
Ssense pointed to that creditor’s action, as well as the recent closing of the de minimis loophole, as “the last straw.” Until Friday, goods imported to the United States that are valued at less than $800 were exempt from tariffs. As of this month, shipments from Canada face a 35% tariff. For Ssense, which built its reputation on offering deeply discounted luxury items from labels like Maison Margiela, Acne Studios and Jacquemus, the higher costs would erode its ability to maintain competitive pricing.
The filing underscores the turmoil facing online luxury retail. LuisaViaRoma declared bankruptcy earlier this month, MatchesFashion shuttered in 2024 and Farfetch survived only after a last-minute sale to Coupang. In the U.S., Saks is still trying to restore vendor trust after months of missed payments.
Ssense’s struggles predate tariffs and the lender’s move. U.S. sales fell 28% in 2024, a sharp reversal from the period between 2019 and 2023, when sales tripled, according to Business of Fashion.
Ssense did not immediately respond to requests for comment on the health of its business.
Looking ahead, Ssense said it aimed to repair relationships with vendors and stabilize cash flow by rebuilding U.S. demand.
“Our mission is more relevant than ever: to discover and champion emerging creative talent,” the company’s spokesperson said. “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.”
This article originally appeared in The New York Times.
