Can Ssense Save Itself?

Over the past few months, Ssense has been caught in a whirlwind of drama. The retailer—which has a sprawling online presence and a five-floor flagship in its home base of Montreal—has long served as a platform for independent designers and a source of discounts on luxury labels. And while its financial hardships have gotten a lot of press, whispers of Ssense’s collapse predate the reports on plummeting sales and the impact of Trump’s global tariffs. Founded in 2003, the company has struggled through back-to-back layoffs, bankruptcy filings, and claims of stiffing both established and emerging brands for millions of dollars. 

Ssense is still shipping clothes, but it’s been a rough year for the brand. Here’s everything that’s happened so far.
 

The First Round(s) of Layoffs (May 30, 2025) 

In May, Ssense laid off eight percent of its workforce, or roughly 100 employees. But it wouldn’t be the first, or last, time that the Canadian retailer would “restructure,” citing economic uncertainty.  

Trump’s Tariffs (Aug. 7, 2025) 

For years, Ssense relied on a loophole with the U.S. de minimis rule, which allowed duty-free imports under $800. But like many overseas businesses, it’s felt the impact of the tariffs on its e-commerce platform—and now it faces a 35 percent surcharge on goods shipped to the United States. In late August, DHL, the company’s go-to courier, announced it would restrict deliveries in response to the suspension of the de minimis tax-exemption rule. In other words, any package over $800 is now subject to duties. 

Bankruptcy (Aug. 28, 2025) 

Ssense filed an application for creditor protection under the Companies’ Creditors Arrangement Act (CCAA)—the Canadian equivalent of bankruptcy protection. The decision was made after an investor, a primary lender, reportedly attempted to force a sale of the company “without consent.”  

“A Stronger Ssense” (Sept. 12, 2025)  

A court ruling granted Ssense permission to remain independent and proceed with internal restructuring instead of selling the company to pay off its $371 million CAD in debt. At an all-hands meeting, CEO and co-founder Rami Atallah reportedly announced “temporary layoffs,” a move that allows the company to “forgo paying severance” but would let employees file for unemployment. Staff were informed that they could be rehired in the coming months “if the business permits,” but “will receive severance if they aren’t brought back.” 

Keeping the Company in the Family (Sept. 17, 2025) 

A sale isn’t completely off the table for Ssense. Rami, along with his brothers Firas and Bassel, with whom he co-founded the company in 2003, told employees that the family would be among the bidders in a potential auction, but ultimately, “the court will determine which proposal is best for the company’s future.”