Canadian retailer Ssense is filing for bankruptcy protection after lenders tried to force a sale of the company, according to a memo sent to employees on Thursday. CEO Rami Atallah and his brothers Bassel and Firas founded the Montreal-based platform in 2003. It is known by fashion fans for featuring designer brands and independent labels alike, as well as for its popular biannual sales.

The company said creditors want to put Ssense for sale under the Companies’ Creditors Arrangement Act, which allows corporations owing creditors over $5 million to restructure their finances while continuing to operate. Instead, the company filed its own CCAA application “to protect the company, keep control of our assets and operations, and fight for the future of the company,” according to The Business of Fashion.

“We are deeply disappointed in this decision, which we believe does not serve the long-term interests of our 1,000+ employees, vendors and partners,” a Ssense spokesperson said about the attempted sale, according to Vogue Business.

Atallah stated that the company has been collaborating with financial and legal advisors to develop its own restructuring plan.

“The court will decide which path we follow, likely within the next week,” he said in the memo. “Until then, our focus remains clear: protect value, stabilize the business, and set up a restructuring plan to secure our future.”

The impact of Trump’s tariffs

The company cited recently imposed tariffs and import fees as a significant hurdle. The Trump administration has imposed a 35% tariff on goods imported from Canada into the United States, effective Aug. 1. The closure of the “de minimus” exemption takes effect on Friday. It previously allowed packages under $800 to enter the U.S. duty-free.

Earlier this year, some Ssense customers began receiving notices to pay duties due to cross-border shipments.

“We are here today because the rules of the game have changed,” Attallah said 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.”

Ssense had already faced economic hardship. The company’s sales fell by 28% in the first half of 2025, and it laid off over 100 employees in May, according to The Business of Fashion.

“Our mission is more relevant than ever: to discover and champion emerging creative talent. With a loyal global customer base, strong brand recognition, and the resilience of a digital-first model, we believe in the fundamental strength of our business,” Ssense’s spokesperson said. “This process will give us the time and stability we need to restructure on our terms, protect the interests of our employees and partners, and emerge stronger for the future.”

Tariffs