Montreal-based luxury retailer SSENSE plans to file for creditor protection under the Companies’ Creditors Arrangement Act (CCAA), citing a sudden liquidity crisis triggered by U.S. changes to its de minimis exemption on low-value parcels, among other pressures.
CEO Rami Atallah wrote in a staff memo, quoted by the BBC, that the firm was “surprised” by the end of duty-free shipments for packages worth US$800 or less to the U.S. He said: “In the past year, our landscape has shifted dramatically with tighter liquidity and increased trade pressures.” He added that the combined impact of the tariff policy change and a lender’s decision to begin a sale process without consent had “created an immediate liquidity crisis no short-term fix could solve.”
SSENSE will file its own CCAA application “to protect the company, retain control of our assets and operations, and defend our future,” Atallah said.
A company spokesperson emphasized the brand’s ongoing confidence: It believes “in the fundamental strength of our business,” plans to continue paying salaries and benefits, and intends to maintain “business-as-usual” operations. In contrast, the primary lender is pushing ahead with its own sale process under CCAA protection.
Founded in 2003 by Atallah and his brothers, SSENSE grew into one of Canada’s most visible global fashion platforms, employing about 1,200 people worldwide and achieving a US$4-billion valuation from Sequoia Capital in 2021.
Fashion technology consultant Huma Aslam told the BBC this is a “significant” move, demonstrating how even large and well-known firms can be vulnerable to U.S. tariffs. McGill’s Charles de Brabant told BBC it is a “double whammy” — inflation-squeezed wallets and U.S. trade policy changes make the current environment “not an easy landscape for retailers.”
Creditor protection does not spell the end of SSENSE
SSENSE’s move to seek creditor protection may sound like the end of the road, but it does not signal a shutdown. Under the CCAA, companies are given time to restructure debts, negotiate with lenders and chart a sustainable path forward while continuing normal operations. Salaries continue to be paid, and stores and online platforms remain open.
For the retailer, this step offers crucial breathing room to adapt to new trade realities and shifting consumer habits. While it reflects financial pressure, it does not close the door on the company’s future. The process highlights the importance of flexibility in retail and the ability to weather unexpected shocks, from tariffs to market fluctuations, as the business works to secure its long-term stability.
Retail landscape in transition: rise of Simons amid HBC’s fall
SSENSE’s troubles come as Canada’s department store scene is being reshaped. The iconic Hudson’s Bay Company (HBC) entered creditor protection in March 2025 and began permanent store closures soon after, including 96 locations with liquidation sales of up to 70% off. Its trademarks were acquired by Canadian Tire for $30 million, preserving its brand legacy even as its physical presence ended.
Into that void steps La Maison Simons, the historic Montreal-founded department store established in 1840. With 18 locations across Canada as of 2024, Simons is one of just two large-format Canadian department-style retailers still operating — the other being Holt Renfrew, which maintains six stores in four provinces.
The survival of Simons, and its continued expansion, highlights how thoughtful leadership and investment in both digital and physical channels can keep traditional retail relevant. One Reddit user noted: “Simons, a canadian department store with a history spanning over 180 years, is doing very well and expanding. They made a huge change in the way they work 20ish years ago and a massive investment in their online distribution 5-6 years ago. It paid off.”
Canadians still favour in-store shopping
Despite SSENSE’s online-focused model, Canadians continue to favour brick-and-mortar options. A KPMG survey of 1,522 Canadians shows 61% mostly shop in-store, with many expressing frustration with online shopping due to misleading product listings or difficult returns. Price remains the top purchasing factor, with 85% ranking it number one.
Arcus projects brick-and-mortar sales will account for 82% of total retail sales in Canada by 2025. Seventy-six percent of shoppers prefer in-store purchases for clothing, electronics and furniture, citing the ability to touch and try items.
Meanwhile, e-commerce is growing, but still a minority share. In March 2025, retail e-commerce sales in Canada stood at $4.2 billion, accounting for 6.0% of total retail trade, according to Statistics Canada — down from 6.2% in February.
Lessons for Canadians from a shifting retail landscape
SSENSE’s filing serves as a cautionary tale of how quickly fortunes can change when a retailer is exposed to trade policy shifts and dependent on outside financing. For consumers and investors, it is a reminder that even high-growth, digitally savvy companies are vulnerable to factors beyond their control.
In contrast, Simons demonstrates the staying power of Canadian heritage brands that have invested in both in-store experiences and online platforms. Its steady expansion across the country shows that adaptability and a willingness to evolve can keep even a 19th-century department store relevant in a fast-moving retail market.
While e-commerce has grown steadily, Canadians still prefer to shop in person for most big-ticket or tactile purchases. The ability to try on clothing, inspect furniture or access customer service in real time continues to outweigh the convenience of online ordering for many. This trend underscores the importance of brick-and-mortar stores in the Canadian economy and personal finance decisions alike.
For shoppers, the message is to be strategic — whether hunting for deals in liquidation sales, balancing the benefits of in-store versus online purchases or stretching budgets in a period of inflation. For retailers, the lesson is even sharper: Survival depends on agility, diversified revenue streams, technological investment and building customer loyalty that can withstand changing economic winds.
Online to offline, for good
SSENSE’s troubles reflect the fragility of purely online, tariff-sensitive models. In contrast, Simons offers a grounded example of how a department-store heritage brand can thrive by combining online strength with a strong in-store experience. The comparison underscores a larger truth about Canadian retail: survival depends on balance.
Creditor protection is not the end for SSENSE but a chance to regroup in a tougher environment. Whether it can adapt as effectively as Simons will be a test of its long-term strength. For Canadians, the shakeup is a reminder that retail is evolving quickly and that where we spend our money helps decide which companies endure. In a climate of inflation, shifting trade rules and changing consumer expectations, the winners will be those that can meet shoppers both online and on the ground.
Sources
1. BBC News: Canadian luxury retailer SSENSE to file for bankruptcy protection, by Nadie Yousif (August 30, 2025)
2. Reddit: Hudson’s Bay’s demise marks the death of the traditional department store in Canada
3. Consulting.ca: Canadian consumers still opting for in-store shopping, says KPMG report (April 30, 2025)
4. Arcus Consulting Group: Retail Trends in 2025
5. Statistics Canada: Retail trade, March 2025 (May 23, 2025
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.