SSENSE has filed for bankruptcy protection, attributing its financial struggles to tariff policies under President Donald Trump.
According to an internal memo obtained by The Business of Fashion, the Montreal-based e-retailer is moving to file an application under Canada’s Companies’ Creditors Arrangement Act.
The filing is similar to Chapter 11 bankruptcy in the United States, as it allows insolvent companies to restructure their finances without ceasing operations.
SSENSE’s Chief Executive Officer Rami Atallah told employees that its primary creditor is attempting to sell the business without SSENSE’s consent. Atallah and his team planned to submit the filing by the end of the week.
“Recently, we have worked closely with financial and legal advisors to develop our own restructuring plan to stabilize the business and rebuild it for the future,” Atallah wrote in the memo. “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.”
According to Business of Fashion, Atallah said the bankruptcy was the result of several factors, including Trump’s trade policies. On July 31, the president signed an executive order increasing import tariffs on certain Canadian goods from 25% to 35%.
This Friday, Trump’s order will also suspend the de minimus rule for all U.S. imports. Since 2016, the loophole has allowed goods worth less than $800 to enter the country duty-free. Atallah told Business of Fashion that the suspension came as a “surprise” and was a big reason for the company’s CCAA application.
SSENSE has faced financial insecurity over the last several months. The company reportedly saw a 28% drop in sales in the first half of 2025, attributed to the post-pandemic shift in consumer habits that has taken a heavy toll on luxury retailers.
SSENSE also reportedly terminated more than 100 employees in May.
“We are here today because the rules of the game have changed,” Attallah continued in the memo. “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.”