SSENSE has filed for bankruptcy protection under Canada’s CCAA as the company faces major financial challenges.
CEO Rami Atallah told employees that the company’s main creditor is trying to sell the business without its approval. He and his team plan to submit the filing by the end of the week.
In his memo, Atallah wrote, “Recently, we have worked closely with financial and legal advisors to develop our own restructuring plan to stabilize the business and rebuild it for the future. The court will decide which path we follow, likely within the next week. Until then, our focus remains clear: protect value, stabilize the business, and set up a restructuring plan to secure our future.”
Tariffs under Donald Trump have played a big role in the company’s struggles. Last month, an executive order increased import tariffs on certain Canadian goods from 25 to 35%. The order also ended the de minimus rule, which allowed goods under $800 to enter the U.S. duty-free. Atallah told Business of Fashion that the suspension was a “surprise” and a key reason for the bankruptcy filing.
SSENSE has also felt the impact of declining sales, reporting a 28% drop in the first half of 2025. In May, the company laid off more than 100 employees to manage costs.
Atallah addressed the situation in his memo, saying, “We are here today because the rules of the game have changed. 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.”
The bankruptcy filing gives SSENSE the chance to restructure, protect its value, and stabilize operations while navigating tariffs and shifting sales trends.
