Why are SSENSE products so cheap?

Ssense's bankruptcy filing is a result of a complex interplay of factors, primarily the company's inability to withstand the financial strain caused by U.S. tariffs and the actions of its primary lender, Bank of Montreal. Here's a detailed analysis: 1. **Impact of U.S. Tariffs**: Ssense, being an e-commerce platform that sells luxury fashion clothing and accessories, has been directly affected by the U.S. tariffs. The company has attributed its bankruptcy filing to the higher costs incurred due to these tariffs. This is consistent with the broader impact of tariffs on the global supply chain, affecting not only Ssense but also other retailers that operate in the luxury fashion sector. 2. **Lender's Actions**: The primary lender, Bank of Montreal, has played a significant role in Ssense's current predicament. The lender forced the issue by filing a request under the Companies’ Creditors Arrangement Act (CCAA), a Canadian bankruptcy law, seeking repayment from Ssense without the company's consent. This move by the lender has effectively placed Ssense under bankruptcy protection, triggering a sales process. Ssense has responded by filing its own CCAA application to safeguard the company, retain control of its assets and operations, and fight for the future of the business. 3. **Workforce Reduction and Financial Strain**: Ssense had already laid off 8% of its workforce, or about 100 employees, in May as a cost-cutting measure amid economic uncertainty and fluctuating tariffs. The layoffs and the lender's actions indicate the company's struggle to maintain financial viability in the face of external pressures. In conclusion, Ssense's bankruptcy filing is a culmination of the company's financial strain due to U.S. tariffs and the aggressive actions of its primary lender. The situation serves as a cautionary example of how companies, especially those in the luxury sector, can be vulnerable to external economic factors and the actions of their financial partners.