Ssense Seeks Breathing Room Under CCAA, Launches Sale Process

Montreal-based Ssense, a luxury e-commerce platform known for its curated brand mix and cultural collaborations, obtained protection under the Companies’ Creditors Arrangement Act on September 12, 2025.

Founded in 2003 by brothers Rami, Firas, and Bassel Atallah, Ssense became one of Canada’s best-known digital retail success stories. The siblings carved out a niche by pairing fashion retail with editorial content and cultural programming, helping attract Sequoia Capital as an investor in 2021 and valuing the company at $5 billion at its peak.

The company thrived during the pandemic, when e-commerce volumes surged, but faltered as consumer spending weakened between 2023 and 2025. High interest rates, aging and overstocked inventory, and the July 2025 elimination of the U.S. “de minimis” exemption on sub-US$800 shipments—previously allowing most Ssense orders to bypass tariffs—delivered a major blow, reducing its U.S. customer base from 58% to 40%. Suppliers tightened terms to cash-on-delivery, further constraining access to fresh inventory despite aggressive cost cuts and restructuring measures.

As of July 31, 2025, Ssense reported $499 million in liabilities against $387 million in assets. The company owed more than $130 million under syndicated credit facilities led by Bank of Montreal, which matured on August 24 and were not renewed. Notable creditor exposures include Investissement Québec ($21 million), Royal Bank of Canada equipment financing tied to its automated fulfillment centre ($44 million), lease obligations exceeding $50 million, related-party loans of $75 million, and more than $165 million owed to trade creditors.

The relationship with the bank syndicate has been closely managed. After the facilities matured, the lenders advanced emergency funding to cover payroll on August 25 under court-ordered interim charges. The syndicate also filed its own CCAA application on August 27. Following negotiations, the parties agreed on a consensual debtor-led filing to avoid a contested process.

Under the CCAA, Ssense plans to stabilize operations by securing liquidity to purchase fall/winter merchandise, reengaging major carriers, reinstating web service providers, and ensuring continuity with other critical vendors. In parallel, a Sale and Investment Solicitation Process (SISP) will be overseen by EY, with Deloitte consulting for the lenders. Phase 1 bids are due October 13, with a closing targeted before year-end. The monitor emphasized that the process is aimed at preserving going-concern value and safeguarding approximately 900 of Ssense’s 1,160 Montreal employees.

Ernst & Young Inc. was appointed monitor. Deloitte was appointed financial advisor to the lending syndicate. Counsel is Stikeman Elliott LLP for Ssense, Fasken for the monitor, Borden Ladner Gervais LLP for the lending syndicate, and Norton Rose Fulbright for the shareholders.