Ssense files for bankruptcy protection

Ssense is reportedly filing for bankruptcy protection following a move by creditors to initiate the sale of the Canadian luxury retailer, as per a letter sent to employees on Thursday.

In an email sent to staff, the Montreal-based company said the protection move follows the filing of an application to sell the company by its main creditor, without consent from the retailer, under the Companies’ Creditors Arrangement Act (CCAA), according to a B0F report.

Chief executive Rami Atallah explained that Ssense will in response file its own CCAA application within 24 hours “to protect the company, keep control of our assets and operations, and fight for the future of the company,” according to the memo.

“Recently, we have worked closely with financial and legal advisors to develop our own restructuring plan to stabilize the business and rebuild it for the future,” said Atallah, as cited by BoF.

“The court will decide which path we follow, likely within the next week. Until then, our focus remains clear: protect value, stabilize the business, and set up a restructuring plan to secure our future.”

It is unknown which creditor pulled the sale trigger.

The retailer’s CEO went on to explain the headwinds facing his company following the Trump administration’s recent trade policies, which have imposed 25 percent tariffs on goods imported from Canada.

Ssense also cited the closure of the “de minimus” exemption, which allowed packages worth less than $800 to enter the U.S. duty free as a hit operationally for the company.

The bankruptcy protection news follows layoffs at Ssense earlier this year, including 100 positions in May, as the firm tries to lower overheads amid the luxury slowdown affecting demand for high-price goods, especially more younger, aspirational luxury shoppers — Ssense’s target market.