Ssense lenders seek fast sale of retailer in court filing

Ssense lenders seek fast sale of retailer in court filing

Montreal-based online fashion retailer Ssense has announced plans to file for bankruptcy protection after its primary lender signaled intentions to force a sale of the company. The lender's move, which was made under the Companies' Creditors Arrangement Act (CCAA), aims to facilitate a swift sale of Ssense's assets [1].

Ssense, in response, has stated that it intends to file its own CCAA application to retain control of its operations and assets, thereby protecting the interests of its employees and partners. The company has cited the U.S. President Donald Trump's trade directives, including the elimination of the U.S. de minimis exemption, as contributing factors to its current financial struggles [1].

The decision by Ssense's lender to seek a rapid sale comes amidst a challenging year for Canadian retailers, with Hudson's Bay and Frank & Oak shutting down nationwide operations. Retail strategist Lisa Hutcheson suggests that Ssense's situation is part of a broader trend affecting e-commerce companies specializing in luxury brands. She notes that the demand for luxury goods is softening due to inflation and economic uncertainty, and that younger generations are increasingly preferring in-person shopping experiences [1].

While Ssense faces significant challenges, there is hope that the company can reposition itself in the volatile market. The CCAA process will provide Ssense with the time and stability needed to restructure and emerge stronger [1].

References:
[1] https://www.cbc.ca/news/business/ssense-montreal-retail-bankruptcy-1.7621089