SSENSE Battles Creditors in Montreal
Montreal fashion brand SSENSE, known for luxury clothing and accessories, is preparing to file for creditor protection. The move comes as lenders attempt to sell the company without its approval. At the same time, shifting U.S. trade rules and tightening liquidity have created fresh challenges for the once-thriving retailer.
In a memo shared with employees, the company stressed that filing under the Companies’ Creditors Arrangement Act (CCAA) is the only path forward to protect operations, retain assets, and safeguard its future.
What Triggered the Financial Strain
The retailer pointed to two major issues fueling its crisis. First, the end of the U.S. de minimis exemption, which had allowed duty-free shipping on packages worth $800 or less. With its elimination, shipping costs are expected to surge, directly impacting companies like SSENSE that depend on cross-border e-commerce.
Second, SSENSE revealed that its main lender filed a creditor-initiated CCAA application without consent, creating what the brand called “an immediate liquidity crisis.” With limited short-term fixes available, restructuring became the only viable solution.
Operations to Continue for Now
Despite the looming restructuring, SSENSE assured its 1,200 employees worldwide that salaries, benefits, and expense claims will continue during the legal process. The company emphasized that day-to-day operations, both online and in-store, will carry on as usual.
Founded in 2003 by brothers Rami, Firas, and Bassel Atallah, SSENSE attracts about 100 million monthly page views. With 80% of its shoppers aged 18 to 40, the platform has long positioned itself as a trendsetter in luxury e-commerce.
Wider Retail Struggles in Quebec
SSENSE’s troubles mirror a larger crisis for Quebec’s retail sector. Earlier this year, Montreal-based Frank And Oak shut down nine stores after its parent firm filed for creditor protection, citing pandemic-era financial scars.
Groupe Dynamite, which owns Garage and Dynamite clothing lines, also announced store closures across Canada. Court documents show Frank And Oak alone owes creditors nearly $71 million, including landlords and textile partners.
Fast-Fashion’s Growing Impact
Beyond debts and tariffs, local retailers face fierce competition from global fast-fashion giants like Shein and Temu. According to Quebec’s retail council, 58% of retailers have reported falling sales since the arrival of these low-cost competitors, while 17% faced steep declines.
Some retailers have altered sales strategies, with nearly one-third adjusting pricing models. Others, around 13%, were forced to cut staff. The council further accused fast-fashion platforms of dodging Canadian tax, labor, and safety standards while promoting unsustainable consumption.
What’s Next for SSENSE
As the court process unfolds, SSENSE’s future remains uncertain. However, the company insists that restructuring will give it the breathing room needed to stabilize and navigate shifting market realities.
For now, customers can still shop as usual, but the brand’s ability to compete against global rivals and withstand rising costs will be tested in the months ahead.
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