Source: WWD / Getty
President Trump’s tariffs have hit the fashion world hard, slowly raising the prices of your precious new pickups, and now Ssense is waving the white flag… sort of.
The Canada-based online retailer’s primary lender has attempted to put the company up for sale. In an effort to fight back, they’re filing under the Companies’ Creditors Arrangement Act (CCAA), which is similar to Chapter 11 bankruptcy in the United States, according to Business of Fashion.
They hope the filing allows them to restructure their business and chart a course towards a successful financial future.
According to Vogue Business, in a memo, the company says the sale was initiated without its consent and is fighting to regain control.
“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,” a spokesperson said. “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.”
Ssense’s financial problems come after what’s already been a tough year, both internally and externally. Back in May, they laid off 100 staffers, marking their third round of layoffs in the last year.
The company cites tariffs as the main source of the headache, thanks to Trump’s 35% tariff on Canadian goods. Additionally, the de minimis loophole has been closed, which previously exempted consumers from paying a duty fee on shipments costing less than $800.
Now, buyers are being hit with unexpected fees, including one who told Vogue Business in April that when she tried to pick up a delivery, she was first asked to pay $345.
According to Good Morning America, the change will affect all countries shipping to the U.S., and the cost will fall somewhere between 10% and 50%, or a flat fee of $80 to $200 per package.
“Our mission is more relevant than ever: to discover and champion emerging creative talent. With a loyal global customer base, strong brand recognition, and the resilience of a digital-first model, we believe in the fundamental strength of our business,” the spokesperson added. “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.”
Ssense was founded in 2003 by three brothers, Bassel, Firas, and current CEO Rami Atallah. The platform has become known for hosting the typical luxury brands, but also for discovering newer labels to display alongside them, offering a healthy mix of high-end streetwear.
Social media is selfishly more concerned with a potential blowout sale. See the reactions below.
