Ssense has been placed under bankruptcy protection by its primary lender, evidently without the approval of the Montreal, Canada-based fashion e-tailer. According to a spokesperson for Ssense, the lender is trying to force a sale of the company under the Companies’ Creditors Arrangement Act (CCAA). This comes amid a tough economic year for Ssense, which it credits to the Trump Administration’s trade policies, including tariff disturbances and the elimination of the U.S. de minimis exemption. It has also been a victim of an industry-wide luxury slowdown, resulting in consistent, double-digit decreases in sales.

“Over the past several months, we have worked tirelessly and in good faith with our financing partners to secure an agreement that would recapitalize and restructure the business in light of significant economic headwinds facing the retail sector, including the elimination of the U.S. de minimis exemption,” Ssense’s statement reads. “While we sought a collaborative path forward, our primary lender has chosen instead to place the company under CCAA protection and commence a sale process without our consent. We are deeply disappointed in this decision, which we believe does not serve the long-term interests of our 1,000+ employees, vendors, and partners.”

In response, the spokesperson said Ssense will be filing its own CCAA application to “safeguard the company, retain control of our assets and operations, and fight for the future of this business.”

In May, the retailer reportedly laid off 8% of its employees, in addition to cutting back parental leave benefits and freezing bonuses, as a way to mitigate declining cash flow. However, despite its challenges, the company remains hopeful that it will be able to turn around and regain some of its footing.  

“Our mission is more relevant than ever: to discover and champion emerging creative talent,” the spokesperson said. “With a loyal global customer base, strong brand recognition and the resilience of a digital-first model, we believe in the fundamental strength of our business. This process will give us the time and stability we need to restructure on our terms, protect the interests of our employees and partners, and emerge stronger for the future.”

This Ssense news comes during a tumultuous period for multibrand luxury retail: Last year, Matches ceased operations, while South Korean e-commerce giant Coupang acquired Farfetch. This year, Italian retailer Luisaviaroma filed for court protection, and Mytheresa closed its acquisition of Yoox Net-a-Porter. 

Tune into the Fashionista Network to join the conversation with fashion and beauty industry leaders. Sign up here.

#Ssense #Files #Bankruptcy #Protection #Lender #Force #Sale