Ssense Seeks Creditor Protection Amid Lender Pressures
The Canadian fashion world was shaken this week after news broke that Ssense, the Montreal-based luxury fashion retailer, is preparing to file for creditor protection. The move comes as lenders push aggressively for a sale of the company, creating a dramatic standoff between management and its financing partners.
In an internal message to employees, founder and CEO Rami Atallah explained that Ssense intends to file under the Companies’ Creditors Arrangement Act, commonly known as CCAA. This step, he said, is designed to safeguard the company’s assets and operations while management works to preserve control and fight for Ssense’s future. The statement revealed that the filing was not a voluntary strategic choice, but rather a defensive measure against actions taken by the company’s primary lender. That lender, which has not been publicly identified, had already attempted to place Ssense into CCAA without management’s approval, a move aimed at forcing a sale of the business.
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Atallah expressed clear opposition to that path, writing, “We do not believe this is the right path for Ssense.” His stance was reinforced by company spokeswoman Janet Park, who confirmed the filing and emphasized that management had been negotiating in good faith with lenders for months. She acknowledged the difficult climate in the retail sector, citing significant economic headwinds and liquidity pressures. Despite those talks, the lender chose a sale-driven strategy, leaving Ssense with little choice but to seek court protection on its own terms.
The broader challenges facing Ssense are tied to a combination of global trade pressures, rising costs, and changing retail conditions. In recent years, the company has had to lay off staff and navigate tightening liquidity. A particularly sharp blow was dealt when the U.S. government ended a duty-free exemption for small inbound packages valued under $800—a policy change that went into effect this week. That single shift dramatically altered cross-border dynamics for e-commerce companies like Ssense, which rely heavily on U.S. customers.
Despite these pressures, Ssense is not giving up. Park outlined a restructuring plan aimed at restoring trust with vendors, boosting demand through more focused strategies, and reorganizing operations across its global supply chain. The court will soon assess both the company’s filing and the lender’s competing application, with a decision expected within the next week.
Founded in 2003 by Rami Atallah and his brothers, Ssense grew from a Montreal startup into one of Canada’s most prominent technology-driven retailers. At its height, the company generated more than $750 million in annual revenue and was valued at around $5 billion when Sequoia Capital invested in 2021. With a sleek online platform and a flagship store in Old Montreal, it became a global destination for high-end fashion.
Now, with creditor protection in motion, the company faces a defining moment. Its future—whether steered by its founders or sold under lender pressure—will be decided soon, marking one of the most closely watched battles in Canada’s retail sector.
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