On August 28, Canadian luxury e-commerce platform Ssense announced that it will file for protection under the Companies’ Creditors Arrangement Act (CCAA) in order to avoid a forced sale by creditors. The news was first reported by Business of Fashion (BoF).
In a memo to employees, the Montreal-based company explained that creditors were seeking to use the CCAA framework to push through a sale. In response, CEO Rami Atallah said that Ssense would counter this move by filing its own CCAA application within 24 hours, in order to protect the business, retain control over its assets and operations, and secure its future.
Atallah further explained, “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.”
The filing comes against the backdrop of U.S. trade policy. Ssense pointed to the 25 percent tariffs on goods imported from Canada—introduced during the Trump administration—along with the surprise repeal of the de minimis exemption, which previously allowed shipments valued under $800 to enter the U.S. duty-free. This regulatory shift, set to take effect Friday, directly contributed to Ssense’s decision to seek bankruptcy protection.
Despite these challenges, Atallah stressed that Ssense will continue normal operations for the time being, including payment of salaries and benefits.
“We are here today because the rules of the game have changed. What happens next depends on the ruling of the CCAA proceedings, but our determination is unwavering. Now, more than ever, we need focus and commitment,” he emphasized.
Luxury E-Commerce Under Strain
The struggles of Ssense highlight a broader crisis across the luxury e-commerce sector. As the global luxury market slows, several high-profile platforms have faced severe financial challenges.
In 2023, Farfetch was acquired by South Korean retail giant Coupang, leading to the subsequent departure of founder José Neves. Meanwhile, UK-based Matches Fashion entered administration and permanently shut down its website in June 2024, marking the end of an industry mainstay.
Furthermore, Yoox Net-A-Porter (YNAP), which had been under Richemont, had long struggled with weak performance and was acquired in April this year by the Munich-based luxury e-commerce company Mytheresa.
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