Ssense wins temporary protection in battle with creditors

Core Viewpoint - Ssense, a Montréal-based online fashion retailer, has been granted a stay order to protect it from a potential sale by its creditors amid financial difficulties and restructuring efforts [1][2]. Company Summary - Ssense owes approximately $145 million to its lenders, which include major banks such as the Bank of Montreal and JPMorgan Chase [4]. - The company has liabilities totaling $517 million and assets of $420 million as of June 30 [8]. - Founded in 2003 by the Atallah brothers, Ssense specializes in designer fashion and high-end streetwear, also producing editorial content to promote its offerings [7]. Financial Situation - The company is navigating economic challenges, including rising costs due to the removal of a key US shipping exemption, which has impacted its financial stability [5]. - Independent designers using Ssense's platform have reported not being paid for shipments from months prior, indicating cash flow issues within the company [4][7]. Market Context - The multi-brand luxury retail sector has faced significant challenges, with sales declining over 20% year-over-year in 2025, and Ssense has lost market share among high-income shoppers while gaining slightly in the 18-24 age group [9].