Core Insights - Ssense, a Montréal-based online fashion retailer, has secured $40 million in interim financing to continue operations and implement a restructuring plan aimed at ensuring its long-term viability [1][2][15] Financial Overview - As of the latest court filings, Ssense reported assets of $387 million against liabilities of $371 million, which includes over $135 million in loans, $3.2 million in vacation pay, and $93 million owed to trade creditors [3][9] - The company experienced significant net losses: $123 million in 2022, $67.7 million in 2023, and projected $132 million in 2024, with revenue of $1.3 billion in 2024 [12] Restructuring Plan - The restructuring plan includes $15 million from bank lenders and $25 million from the company's founders, with Ernst & Young appointed as the court monitor [4] - A 30-day stay period has been granted, protecting Ssense from creditor collection actions until October 20 [10] Operational Challenges - Persistent liquidity issues have led to conflicts with lenders, prompting the hiring of investment banking firm Greenhill to develop a restructuring plan [6] - The company has faced declining sales due to changing consumer habits and rising interest rates, leading to a significant amount of unsold inventory [12][13] Cost-Cutting Measures - Ssense has implemented various cost-cutting measures, including reducing brand purchases, marking down unsold inventory, and laying off nearly 350 employees, which saved $36 million in fiscal year 2025 [13] - The company also froze base salaries and modified parental leave policies to further reduce costs [13] Market Context - Retail headwinds intensified with the expiration of the de minimis exemption, affecting 59% of Ssense's sales in the US, which have a gross average value of $549 [14]
Ssense reaches agreement with lenders on restructuring plan