Ssense seeks to “safeguard” company from potential sale through creditor protection

Montréal-based online fashion retailer Ssense said it would file for protection from creditors to “safeguard” the company from a potential sale by its lenders.

“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.”

This comes after the e-retailer’s primary lender filed to place Ssense under protection of the Companies’ Creditors Arrangement Act (CCAA) without its consent, the company said in a statement to BetaKit. The CCAA Act allows large companies owing more than $5 million to restructure under court supervision.

Ssense spokesperson Olive Leatherwood said the company had been working “tirelessly and in good faith” with its lenders to restructure the business as it navigated economic headwinds for retailers.

“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,” the statement said.

One of the “significant headwinds” Ssense faces is the elimination of the de minimis exemption, which, before it expired today, allowed shipments worth less than $800 USD to enter the United States (US) duty-free. Direct-to-consumer (D2C) online retailers who sell into the US, including Ssense, now have their goods subject to additional tariffs if they are not covered under existing trade agreements.

Founded by brothers Rami, Firas, and Bassel Atallah in 2003, Ssense is an e-commerce retailer specializing in designer fashion and high-end streetwear. The company also creates editorial content that highlights its retailer offerings.

Ssense’s intent to file for creditor protection was first reported by The Business of Fashion, which cited an internal message sent to company staff by CEO Rami Atallah.

The internal memo reportedly said the company would imminently file its own CCAA application to fight a sale, and attempt to keep control over its assets and operations. Atallah said in the memo that Ssense has developed its own restructuring plan and that the court will decide its next steps.