Luxury fashion retailer Ssense has filed for bankruptcy protection after a group of creditors moved to acquire the Canadian business, according to various media reports.
The Montreal-based global platform stocks a raft of Australian designer labels, including Anna Quan, Ksubi, Camilla and Marc, Matteau, Bec + Bridge, Emu Australia, Bond-Eye, Christopher Esber, Le Specs, Dion Lee and Zimmermann.
According to news reports that were first reported by the Business of Fashion in the US and The Logic in Canada, Ssense sent an email to staff saying the bankruptcy protection move follows the filing of an application to sell the company by a group of creditors led by the Bank of Montreal. This is reportedly being done without consent from the retailer, under the Companies’ Creditors Arrangement Act (CCAA).
Ssense CEO Rami Atallah confirmed it will file its own CCAA application within 24 hours to protect the company and keep control of its assets
“Recently, we have worked closely with financial and legal advisors to develop our own restructuring plan to stabilize the business and rebuild it for the future,” Atallah said, according to BoF and other reports.
“The court will decide which path we follow, likely within the next week. Until then, our focus remains clear: protect value, stabilize the business, and set up a restructuring plan to secure our future.”
Atallah noted that there are headwinds Ssense is facing following US President Donald Trump’s recent tariffs, including a 25 per cent tariff on Canadian goods coming into the United States.
There is also the ‘de minimis’ exemption on duty payments for goods under $800 in value, which has been scrapped. As of August 29, all goods coming into the United States will be met with a duty payment, regardless of value. Ssense claimed this has also affected the company’s operations.
News reports – including the Fashion Network – noted the bankruptcy protection news follows layoffs at Ssense earlier this year, including 100 positions in May, according to Fashion Network, “as the firm tries to lower overheads amid the luxury slowdown affecting demand for high-price goods, especially more younger, aspirational luxury shoppers – Ssense's target market.”