Ssense — the Canadian retailer known for designer fashion and luxury streetwear founded by CEO Rami Atallah and family — has filed for bankruptcy protection, according to Vogue Business.
Announced on Thursday, Aug. 28, 2025, an Ssense spokesperson said the retailer’s primary lender had placed the company under Canada’s Companies’ Creditors Arrangement Act (CCAA) and initiated a sales process without the company’s “consent.”
The CCAA — the Canadian equivalent of Chapter 11 bankruptcy in the United States — allows insolvent companies owing over $5 million to restructure their debts while continuing operations.
“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,” the spokesperson said, Vogue Business reported. “We will be filing our own CCAA application to safeguard the company, retain control of our assets and operations, and fight for the future of this business.”
The filing comes as Ssense, founded in 2003, cites rising costs tied to tariffs from the Trump administration’s global trade war. As of Aug. 1, 2025, Canada faces a 35% tariff on goods shipped to the U.S., though some exemptions apply.
According to a White House Fact Sheet, President Donald Trump declared a national emergency under the International Emergency Economic Powers Act to address the public health crisis fueled by fentanyl and other illicit drugs coming into the U.S. from Canada. Citing Canada’s failure to cooperate and retaliatory actions, Trump raised tariffs on Canadian goods from 25% to 35%.
Additionally, Reuters confirms the U.S. closed the “de minimis” loophole on Friday, Aug. 29, 2025, making packages under $800 no longer exempt from import duties. The outlets says this will begin “raising costs and disrupting supply chain models for e-commerce companies, small businesses using online marketplaces and consumers alike.”
“Over the past several months, we have worked tirelessly and in good faith with our financing partners to secure an agreement that would recapitalise and restructure the business in light of significant economic headwinds facing the retail sector, including the elimination of the US de minimis exemption,” the Ssense spokesperson said, per Vogue Business.
Ssense laid off 100 employees in May — about 8% of its workforce — marking its third round of layoffs in the past year.
“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,” the spokesperson added.
