The collapse of cool? SSENSE files for bankruptcy protection

Montreal-based fashion retailer SSENSE is filing for creditor protection under Canada’s Companies’ Creditors Arrangement Act (CCAA) following a failed bid to reach a restructuring deal with its lenders. The move follows an attempt by creditors—led by Bank of Montreal—to force a sale of the company, a step SSENSE says it did not consent to.

In an internal memo sent Thursday, CEO Rami Atallah told employees the company is facing “an immediate liquidity crisis that no short-term solution could address.” The CCAA filing is intended to allow SSENSE to maintain control over its operations while it develops a restructuring plan with legal and financial advisors.

The retailer has blamed its financial troubles in part on new U.S. trade policies, including the elimination of the de minimis exemption, which previously allowed goods under $800 to enter the U.S. duty-free. That exemption ends Friday, a blow to SSENSE's U.S.-based business, which relies heavily on cross-border e-commerce.

SSENSE has also faced declining sales amid a broader luxury retail slowdown, especially among younger, aspirational consumers. In May, the company laid off more than 100 employees—around 8% of its workforce. At its peak, the company was valued at $5 billion following a 2021 investment from Sequoia Capital.

“At a time when the rules of the game have changed, our mission remains clear,” Atallah said. “We will fight for the future of this business.”

A court ruling expected in the coming week will determine which version of the CCAA filing proceeds: the lender-led sale process, or SSENSE's own restructuring bid.