Canadian luxury retailer SSENSE has announced plans to file for bankruptcy protection under the Companies’ Creditors Arrangement Act (CCAA), citing severe financial strain caused by recent trade changes and tightening liquidity. The Montreal-based company, known globally for its high-end fashion platform, employs roughly 1,200 people worldwide and was valued at $4 billion in 2021 by Sequoia Capital.
In an email to staff, CEO Rami Atallah said the removal of the US “de minimis” exemption — which allowed duty-free shipments of goods valued at $800 or less — created an “immediate liquidity crisis no short-term fix could solve.” The exemption, widely used by e-commerce retailers, was eliminated last month following an executive order from US President Donald Trump. Combined with lenders initiating a sale process without the company’s consent, Atallah said SSENSE had little choice but to seek protection to “retain control of our assets and operations, and defend our future.”
Despite the filing, SSENSE emphasized that it intends to operate on a “business-as-usual” basis, continuing to pay salaries and benefits while restructuring its finances. The company maintains that it remains fundamentally strong but needs the legal protections of CCAA to stabilize operations and chart a sustainable path forward.
Retail experts say the move reflects broader challenges facing the luxury sector. Inflation-driven declines in consumer spending, coupled with new US tariffs, have created what industry analyst Charles de Brabant calls a “double whammy” for brands reliant on cross-border sales. The United States accounts for a significant portion of SSENSE’s business, making the recent policy changes particularly damaging.
SSENSE now joins a growing list of companies grappling with the fallout of the policy shift. Other retailers, such as Province of Canada, have temporarily suspended US shipments, while global brands like Coach’s parent company, Tapestry, project multimillion-dollar losses. Analysts warn that unless market conditions improve, more North American retailers could face similar financial strain in the coming months.