Ssense Files for Bankruptcy Protection Amid Lender Dispute

Key Facts:

• Montreal-based luxury e-commerce retailer Ssense to apply for bankruptcy protection
• Move follows primary lender’s push to force a company sale under CCAA
• Lenders include BMO, RBC, Scotiabank, National Bank, and JPMorgan Chase
• Ssense cites U.S. trade directives and weakening luxury demand as challenges
• Company vows to restructure operations and retain control of assets

Montreal fashion retailer Ssense has announced plans to seek bankruptcy protection after its primary lender attempted to push the company into a sale. In a statement to CBC News, Ssense said the lender acted without its consent by placing it under Companies’ Creditors Arrangement Act (CCAA) protection — a measure that prevents creditors from forcing insolvency while allowing time for restructuring. The retailer now intends to file its own application to safeguard assets and maintain control of its operations.

The announcement comes during a turbulent period for Canadian retailers, following closures of Hudson’s Bay and Frank & Oak earlier this year. Ssense attributed part of its difficulties to recent U.S. trade policies, including the removal of the de minimis exemption that once allowed Canadian shipments under $800 to cross the border duty-free. Industry analysts say inflation, shifting consumer preferences, and global competition have also contributed to Ssense’s struggles, as luxury demand softens and younger shoppers lean toward in-store experiences.

Retail consultant Lisa Hutcheson said Ssense’s challenges represent a “perfect storm” of economic pressures and market shifts, but noted that the company still has opportunities if it can reposition its business. For now, Ssense insists the bankruptcy protection is designed to buy time and preserve stability as it works to restructure. The company emphasized that protecting employees and partners will remain central to its strategy going forward.