SSENSE is filing for bankruptcy protection, according to a letter written by CEO Rami Attallah to employees on Thursday, per Business of Fashion.
In the email, the Montreal-based company’s chief executive stated that SSENSE’s lenders aim to sell the company under the Companies’ Creditors Arrangement Act (a Canadian federal statute that allows large companies to restructure their finances to avoid bankruptcy). However, SSENSE intends to bar the sale by filing a CCAA application “to protect the company, keep control of our assets and operations, and fight for the future of the company” in the next 24 hours.
Atallah said, “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. 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.”
The company’s insolvency comes after several rounds of layoffs earlier this year. Attalah stated that the company’s financial troubles are in large part due to President Donald Trump’s 25% tariff on goods imported from Canada. Additionally, this Friday’s termination of the “de minimis” exemption, which permitted packages valued up to $800 USD to enter the U.S. duty-free, also contributed to SSENSE’s decision to file the CCAA application.
“These events caused an immediate liquidity crisis that no short-term solution could address,” Atallah said, per The Logic. “After exploring all options, we have concluded that a CCAA restructuring is the only way to continue our operations.”
SSENSE will proceed with normal operations and salaries will remain unchanged until further notice.
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