Ssense is filing for bankruptcy protection after creditors attempted to force a sale of the company, according to a letter shared with employees. Chief Executive Rami Atallah confirmed on Thursday that the Montreal-based fashion e-tailer will seek protection under Canada’s Companies’ Creditors Arrangement Act (CCAA).
Atallah told staff that the filing is meant to “protect the company, keep control of our assets and operations, and fight for the future of the company.” He stressed that Ssense will continue paying employees and maintaining operations during the process.
Legal Battle Over Control
According to Atallah, creditors had sought to sell Ssense under CCAA provisions. In response, the company decided to file its own application within 24 hours to block the move.
“The court will decide which path we follow, likely within the next week,” Atallah said. “Until then, our focus remains clear: protect value, stabilize the business, and set up a restructuring plan to secure our future.”
The filing sets the stage for a legal showdown over the future of one of Canada’s most recognizable digital retailers.
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Tariffs and Policy Shifts
Atallah attributed Ssense’s financial strain partly to trade policies introduced during the Trump administration. He pointed to 25 percent tariffs on goods imported from Canada and the closure of the “de minimis” exemption, which had allowed packages worth under $800 to enter the US duty-free.
The elimination of that exemption, set to take effect on Friday, directly impacted Ssense’s operations. Atallah called the policy change a “surprise” that forced the company into restructuring.
Declining Sales and Layoffs
The filing caps a difficult year for Ssense. Luxury retail has faced a global slowdown, hitting young, aspirational consumers the hardest. According to Consumer Edge data, Ssense’s sales fell 28 percent in the first half of 2025 compared to the previous year.
In May, the company laid off more than 100 employees across multiple departments, an early sign of mounting financial stress.
Atallah’s Commitment to Employees
Despite the challenges, Atallah reassured employees that Ssense will continue to operate. Salaries and benefits will be paid as usual, and the leadership team remains focused on stabilizing the company.
“We are here today because the rules of the game have changed,” Atallah said. “What happens next depends on the ruling of the CCAA proceedings, but our determination is unwavering. Now, more than ever, we need focus and commitment.”
What Comes Next
The court is expected to rule on the company’s CCAA application within a week. Until then, Ssense’s operations will remain unchanged, though its long-term future depends on the outcome of the restructuring battle.
If the court sides with creditors, Ssense could face a forced sale. If it accepts the company’s plan, Ssense will continue under its existing leadership while restructuring its debts.
For now, the Montreal-based retailer is preparing for a critical moment in its 21-year history.
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