Montreal-based luxury fashion e-tailer Ssense has officially filed for bankruptcy protection under Canada’s Companies’ Creditors Arrangement Act (CCAA), as the company battles mounting financial pressures, new trade tariffs, and shifting consumer demand.
The filing, made on August 28, 2025, marks a critical turning point for Ssense, which has long been regarded as one of the leading online platforms for luxury fashion and emerging designer brands.
The decision follows a unilateral move by the company’s primary lender to initiate its own creditor-led restructuring process, a move Ssense countered by filing its own application to retain operational control.
Why Ssense Filed for Bankruptcy Protection
The Ssense bankruptcy filing was triggered by several factors:
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New U.S. tariffs of up to 35% on goods entering the American market, a key source of revenue for Ssense.
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The removal of the “de minimis” exemption, which previously allowed U.S. shoppers to purchase Canadian shipments under $800 duty-free.
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A luxury market slowdown, as younger aspirational consumers cut back on discretionary fashion spending post-pandemic.
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Rising operating costs despite previous layoffs of about 8% of its workforce earlier in 2025.
These combined pressures eroded Ssense’s profitability and put the business in direct conflict with lenders eager to force a sale of the company.
Ssense’s Strategy Going Forward
By filing its own CCAA bankruptcy protection, Ssense aims to stabilize operations while restructuring its finances. Unlike liquidation, this process allows the retailer to continue running its e-commerce site, paying staff, and fulfilling vendor agreements while seeking long-term solutions.
In a memo to employees, Ssense management stressed that the move was designed to protect employees, partners, and vendors while the company explores options to emerge stronger from the crisis.
Impact on the Luxury Fashion Market
The Ssense bankruptcy case highlights the vulnerability of digital-first luxury retailers facing global trade shifts.
The U.S. tariff environment and duty-free policy changes have made it increasingly difficult for Canadian-based e-commerce platforms to remain competitive in the American market.
Analysts suggest the bankruptcy filing could reshape the luxury retail landscape, especially for emerging designers who relied on Ssense as a global launchpad.
Competitors such as Farfetch, Net-a-Porter, and Matches could see increased opportunities, though they too face tightening margins.
What Happens Next?
The Canadian court overseeing the case is expected to rule within a week on the competing CCAA applications—between Ssense’s bid to self-manage restructuring and its lender’s push for a creditor-led sale.
Until then, Ssense’s operations will continue uninterrupted.
Bottom Line
The Ssense bankruptcy filing underscores the challenges luxury e-commerce faces amid tariffs, shifting consumer behavior, and creditor pressures.
While the company is not shutting down, its future hinges on whether it can successfully restructure and adapt to a rapidly changing retail environment.
For now, Ssense remains open for business, but the coming weeks will determine whether the Montreal retailer can retain control of its destiny—or be forced into a sale.
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