SSENSE To File for Bankruptcy Protection

According to reports from Business of Fashion, SSENSE has announced its intention to seek bankruptcy protection, as stated in a letter penned by the company’s CEO, Rami Attallah, addressed to employees on Thursday.

In an email, the CEO of the Montreal-based firm announced that SSENSE’s creditors are considering selling the company under the Companies’ Creditors Arrangement Act (CCAA), a Canadian law allowing large corporations to restructure their finances to avoid bankruptcy. However, SSENSE plans to prevent this sale by submitting a CCAA application within the next 24 hours in order to safeguard the company, maintain control of its assets and operations, and work towards preserving the company’s future.

According to Atallah, we’ve been collaborating with financial and legal experts to create a business restructuring strategy aimed at strengthening our company for the future. The court will choose which direction we take in the coming week. For now, our primary objective is to preserve value, reinforce the business, and establish a restructuring plan that guarantees our long-term success.

The company’s bankruptcy follows a series of job cuts earlier this year. Attalah attributed the financial difficulties mainly to President Donald Trump’s 25% import tariff on goods from Canada. Furthermore, the termination of the “de minimis” exemption on Friday, which allowed duty-free entry for packages up to $800 USD into the U.S., also played a significant role in SSENSE’s decision to file for CCAA protection.

According to Atallah as reported by The Logic, these events led to an urgent cash flow problem that couldn’t be resolved through quick fixes. After considering various possibilities, it appears that a comprehensive Company’s Creditors Arrangement Act (CCAA) restructuring is the best approach to keep our business running.

SSENSE will proceed with normal operations and salaries will remain unchanged until further notice.

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