Bankruptcy protection files by Ssense as its creditors tried to compel a company sale. Ssense estimated that the tariffs imposed on its cross-border shipping, 35% U.S. tariffs on goods exported to Canada.
Business of Fashion documents that the Montreal-based luxury online retailer Ssense is seeking bankruptcy protection, as its creditors tried to compel a company sale. The move was announced by CEO Rami Atallah who promoted the idea by the fact that the company faced economic pressures especially tariffs that necessitated the restructuring.
Vogue Business reported that the company had used the Companies Creditors Arrangement Act (CCAA) of Canada, the Canadian counterpart to Chapter 11 of the U.S. Ssense estimated that the tariffs imposed on its cross-border shipping, such as a high tariff of 35 per cent and the removal of a so-called de minimis tariff on goods under US $800, had substantial international effects on its profitability and shipping costs.
The Cut also singles out the same filing and its rationale, as it is done in the other big sources.
What Led to This?
Business of Fashion covers an analysis by the same title, Ssense: What Went Wrong, citing long-term strategic failures: reliance on Gen-Z trends, regular markdowns, and dwindling popularity–all of which resulted in poor performance prior to the last tariff blow.
Trade-policy impacts (now)
- U.S. repeals the $800 exemption on de minimis on Aug 29, 2025. Any small parcels into the U.S. are subject to duties/customs entry which adds cost and hassle to cross-border e-commerce.
- Canada was the victim of country-specific tariffs. According to Vogue Business, 35% U.S. tariffs on goods exported to Canada (vs. -25% Mexico, -30% China as of Aug 1), have a direct impact on Ssense U.S. business (its biggest market).
- Direct impact Ssense: increased landed costs per order, charges at point of sale, slower delivery (formal entries), and diminished price competitiveness when it holds its big seasonal sales Ssense in its statement and today’s CCAA filing.
Comparison of this to other luxury e-tailers.
- In 2024, Matches imploded and shut the site in 2025; brands were left to collect unpaid debts- an early signal of the stress in multi-brand luxury frameworks.
Farfetch escaped bankruptcy through a $500m rescue/acquisition by Coupang (Dec 2023), and then retrenched.
Luisaviaroma applied to the court to be protected (Aug 2025), using macro headwinds such as tariffs and transport costs.
- Mytheresa defied the trend, selling its Yoox Net-a-Porter (Apr 23, 2025) to leans towards UHNW consumers and tight inventory control-positioning that’s been more resilient than models based on promotion and high discounts.
What this implies to independent brands that are related to Ssense.
Short term (next 1–3 months):
- Increased cash-flow risk: anticipate cash payments to be delayed or orders cancelled due to the Ssense reorganization under the CCAA in Canada. Establish a receivables exposure build. (Similarities to Matches results are didactic.)
- It is pressure on margins on U.S. sales: now doses/admin are imposed on small parcels. When the Ssense is passed through charges, conversion can decline; when it is recouped, wholesale sell-through incentives/markdown pressure could rise.
Medium term (this season):
- Diversification at wholesale is an emergency. The concentration risk of one global platform has become one of the top-5 business risks of indie labels. Put greater emphasis on accounts using U.S. domestic warehousing or retailers that bulk-import (fewer, larger entries) to avoid per-parcel costs.
- Tighten terms: seek partial prepayment, shorter net terms, or consignment/marketplace splits; trade credit insurance or receivables factoring on any outstanding Ssense invoices. These moves increased in 20242025 after (Brands burned in Matches’ collapse) was announced in 2024, hence the acceleration of these moves.
- Operational pivots:
o Ship U.S. orders are U.S. 3PL (or bonded/DC bulk import + domestic parcel) to prevent repeated small-parcel entries.
o Think made-to-order/pre-order capsules to minimize inventory exposure in event of wholesale softening.
Tactics had you made your stay at Ssense:
- Re-negotiate: no-markdown windows, stricter payment arrangements, and marketing assistance instead of greater discounting. Indie labels have long warned that the aggressive platform discounting erodes brand equity- use the restructuring moment to reset.
SKU mix: focus on higher AOV items that are more duty/admin-friendly or change to lower effective tariff items where possible (collaborate with a customs broker).
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