Ssense online luxury retailer, faces financial troubles in 2025. The brand’s focus on Gen-Z and hyper-discounting has reversed its fortunes. (Ssense via BOF)
Canadian luxury retailer Ssense has filed for bankruptcy protection, citing escalating tariffs and industry headwinds as the main drivers behind its financial strain. The company confirmed the move on Thursday, saying it was forced into the process after its primary lender placed it under protection without consent.
The filing falls under Canada’s Companies’ Creditors Arrangement Act (CCAA), a law similar to Chapter 11 bankruptcy in the United States. The CCAA allows companies owing more than $5 million to restructure debts while continuing operations.
In a statement, a spokesperson for Ssense expressed disappointment. “We believe this decision does not serve the long-term interests of our employees, vendors, or partners,” they said. “We will be filing our own CCAA application to safeguard our business, protect our assets, and fight for the company’s future.”
Tariffs Take a Heavy Toll
Ssense directly linked its financial challenges to trade policies introduced earlier this year by the Trump administration. As of August 1, Canadian goods entering the US face a 35% tariff, higher than those imposed on Mexico (25%) and China (30%).
The closure of the long-standing de minimis loophole, effective this Friday, has further hurt the retailer. Previously, US customers could receive packages under $800 without duties. Now, every cross-border order will be taxed.
“Over recent months, we worked tirelessly with financing partners to secure a restructuring agreement,” the spokesperson explained. “But with tariffs climbing and the elimination of the de minimis exemption, the financial pressure became unsustainable.”
Shoppers have already begun feeling the pinch. Earlier this year, some customers reported unexpected duties on orders placed during Ssense’s popular biannual sales, sparking disappointment among loyal buyers.
Broader Luxury Retail Crisis
Ssense’s filing comes during a turbulent time for multi-brand luxury retailers. Post-pandemic spending spikes have cooled, leaving many companies vulnerable. Italian fashion retailer Luisaviaroma recently sought court protection, Matches Fashion shuttered last year, and Farfetch was sold in a rushed deal to Korean e-commerce giant Coupang. Meanwhile, Mytheresa completed its acquisition of Yoox Net-a-Porter, signaling rapid consolidation in the sector.
Ssense itself has been tightening operations. In May, the company cut 100 jobs, about 8% of its workforce, marking its third round of layoffs in just a year.
Ssense CEO Rami Atallah. Photo: WireImage
Impact on Independent Designers
Founded in 2003 by CEO Rami Atallah and his brothers, Bassel and Firas, Ssense has become a crucial partner for independent designers. Many emerging brands rely on the Montreal-based company for their first wholesale orders and international exposure. Its collapse would deal a significant blow to the indie fashion community, already facing reduced consumer spending power and rising costs.
Looking Ahead
Despite the setbacks, Ssense insists its core remains strong. The company pointed to its digital-first model, global customer base, and reputation for spotlighting new talent as reasons for optimism.
“Our mission is more relevant than ever — to champion emerging creative voices,” the spokesperson said. “This process gives us time and stability to restructure, protect our employees and partners, and re-emerge stronger.”
For now, the fate of one of Canada’s most celebrated fashion retailers rests on how the restructuring process unfolds.
