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.
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