Montréal-based fashion e-commerce retailer Ssense has secured a major reprieve in its battle to remain solvent, receiving court approval to proceed with a restructuring plan under the Companies’ Creditors Arrangement Act (CCAA). The decision by the Québec Superior Court grants the company interim financing worth nearly $40 million, giving it a critical window to stabilize operations and chart a new path forward.
“With the support of our lenders, we now have the foundation to develop and implement a restructuring plan aimed at securing Ssense’s long-term future,” said co-founder and CEO Rami Atallah in a statement. “We now have the time, resources, and structure in place to begin the process of rebuilding a stronger Ssense.”
The agreement prevents a forced sale that had been initiated by lenders in August, allowing Ssense to remain under the leadership of the Atallah brothers and preserve its 1,100-strong workforce.
The interim financing package includes $15 million from Ssense’s bank lenders, a group that includes the Bank of Montreal, Royal Bank of Canada, Scotiabank, National Bank of Canada, and JPMorgan Chase, and $25 million in new capital from the company’s founders. Court filings show Ssense’s assets total $387 million against liabilities of $371 million.
The liabilities include $135 million in maturing loans, $3.2 million in vacation pay for employees, $93 million owed to suppliers and trade creditors, and a $21 million loan from Investissement Québec related to the company’s fulfillment centre in Saint-Laurent, Québec. Ernst & Young has been appointed as the court monitor to oversee the restructuring process.
The court also granted a 30-day stay of proceedings, shielding the company from creditor actions until October 20. The order allows Ssense to fulfill online customer orders and maintain operations while negotiating with suppliers and creditors.
The Road to Restructuring
The restructuring process follows months of financial strain and tense negotiations. Ssense had hired investment bank Greenhill in July to design a refinancing plan that would appease lenders and keep the business afloat. However, lenders rejected the proposal, and on August 27, they sought to place Ssense under creditor protection to force a sale.
Ssense responded two days later with its own CCAA filing, pledging to fight for the company’s future. “We were deeply disappointed by the lenders’ decision,” a spokesperson said at the time, signaling that the company was unwilling to relinquish control.
Following intensive negotiations, both parties reached an agreement on September 6, paving the way for the court-approved plan.
Business Challenges and Market Pressures
Ssense’s troubles stem from a combination of slowing sales, rising interest rates, and persistent liquidity issues. The retailer reported net losses of $123 million in 2022, $67.7 million in 2023, and $132 million in 2024, despite generating $1.3 billion in revenue last year.
Consumer demand softened after the pandemic, leaving Ssense with a significant amount of unsold inventory. The company implemented several cost-cutting measures to control losses, including reducing purchases of lower-margin brands, marking down older stock, and using proprietary algorithms to reduce advertising spending.
Between January 2023 and May 2025, Ssense laid off nearly 350 employees, cut evening warehouse shifts, and shifted half its workforce into cross-functional roles. These moves generated $36 million in savings for fiscal 2025. The company also froze salaries and adjusted parental leave policies in a bid to conserve cash.
Another blow came in August with the expiration of the de minimis exemption, a loophole that allowed duty-free shipments into the United States under $800 USD. The U.S. is a key market for Ssense, representing 59 percent of its sales with an average order value of $549 USD.
The elimination of the exemption raised costs for U.S.-bound shipments and may have put additional pressure on margins.
Looking Ahead: Sale and Investment Process
Even with fresh financing, Ssense acknowledges that its liquidity problems persist. The company will now launch a Sale and Investment Solicitation Process (SISP) to explore potential buyers, investors, or financing partners.
This process could determine whether Ssense remains independent, finds a strategic partner, or sells a majority stake. The goal, according to filings, is to “stabilize operations and maximize value for stakeholders.”
The turnaround marks a dramatic reversal for the retailer, which was valued at $5 billion just four years ago when U.S. investment firm Sequoia Capital took a minority stake. At the time, Ssense was seen as one of Canada’s most promising global retail players, celebrated for its blend of luxury fashion and streetwear and its influential editorial platform.
Today, the focus is survival. If Ssense successfully navigates the restructuring process, it could reemerge as a leaner, more financially disciplined business better positioned to weather shifting retail trends.
