The Canadian e-commerce platform Ssense has creditor: internal protection requested.
According to several media, including Vogue Business and The Business of Fashion (BOF), the company submitted an application on Thursday to the Canadian Companies’ Creditors Arrangement Act (CCAA).
The CCAA is a federal law that is comparable to insolvency protection and enables companies to restructure their finances. It applies to payable companies with liabilities of more than five million US dollars and offers a legal framework to reorganize debts and at the same time continue business operations. Fashionunited asked Ssense for a statement.
As can be seen from a letter viewed by BOF: the company’s inside, the creditors want to: Inside the company for sale as part of the CCAA. In response to this, Managing Director Rami Atallah announced that Ssense would make his own application to prevent a sale. Within 24 hours, they wanted to use the CCAA “to protect the company, keep control of our assets and our business and to fight for the future of the company”.
ATALLAH also that Ssense, in close cooperation with financial and legal advisors: in the inside, had developed a restructuring plan to stabilize the business and to reorganize the long-term. A court is expected to decide within a week about whether Ssense may implement his own plan or a seller: internal -controlled procedures must follow. Nevertheless, the CEO emphasized that Ssense would continue the operation as usual and that employees continue to receive salaries and social benefits.
Are US tariffs to blame for the financial problems?
The financial difficulties of the company based in Montreal have been tightened by changed trade policy in the United States. Ssense referred to the 25 percent tariffs imposed by the Trump government to Canadian imports and the end of the so-called de minimis exception, which previously allowed the duty-free import of goods worth less than $ 800. Both factors have contributed significantly to bankruptcy registration.
The cooling in the luxury segment presented Ssense with several challenges last year. According to Business of Fashion, the dealers’ sales fell by 28 percent in the first half of 2025. In addition, the company deleted more than 100 jobs in May, which corresponded to around eight percent of the workforce at the time.