Luxury Fashion Retailer Ssense Faces Urgent Sale Amid Debt Crisis

Luxury fashion retailer Ssense faces a quick sale after lenders, led by Bank of Montreal, lost confidence in the company's ability to oversee operations. The group of creditors, owed around C$145 million, is pushing for a fast process to find new investors and has proposed contacting potential buyers by next week. The company, valued at over C$5 billion in 2021, is threatened by debt and mistrust, and its vendors are caught in the fallout.

Luxury fashion retailer Ssense is on the brink of a quick sale after lenders, led by Bank of Montreal, lost confidence in the company's ability to manage operations. The group of creditors, owed around C$145 million, has pushed for a swift process to find new investors and has proposed contacting potential buyers by next week [3].

The company, which was valued at over C$5 billion in 2021, is now threatened by debt and mistrust. Ssense has been facing an immediate liquidity crisis, as stated by its CEO Rami Atallah [1]. The company's creditors, including Royal Bank of Canada, JPMorgan Chase & Co., National Bank of Canada, and Bank of Nova Scotia, have filed a request under the Companies’ Creditors Arrangement Act (CCAA) to seek repayment and place the company under protection [1][2][3].

Ssense has responded by filing its own CCAA application to safeguard the company, retain control of its assets and operations, and fight for its future [1]. The company's spokesperson stated that while they sought a collaborative path forward, their primary lender chose to place the company under CCAA protection and commence a sale process without their consent [1].

The retailer's financial struggles have also impacted its vendors. Some suppliers were not being paid, according to the banks' court filing [3]. Investment bank Greenhill & Co. was retained by Ssense to present a refinancing plan, but the banks were not satisfied and demanded repayment of the company's credit facilities [3].

The company's physical location in Montreal's Old Port neighbourhood and distribution centre in a nearby suburb have not been enough to prevent the current crisis. The removal of the de minimis exemption by the United States, which had allowed for goods below US$800 to be shipped duty-free, has also contributed to Ssense's challenges [1].

Ssense's rapid expansion and the subsequent debt accumulation have led to the current situation. Despite the challenges, the company has a strong brand and a loyal customer base, which could attract potential buyers. The quick sale process initiated by the lenders aims to find new investors who can help Ssense navigate its financial difficulties and secure its future.

References:
[1] https://financialpost.com/news/retail-marketing/ssense-to-seek-protection-clash-creditors
[2] https://news.bloomberglaw.com/international-trade/luxury-fashion-seller-ssense-nears-creditor-protection-in-canada
[3] https://www.bloomberg.com/news/articles/2025-09-02/ssense-lenders-seek-fast-sale-of-struggling-fashion-retailer