Ssense cut more than 200 jobs days after founders won bid to buy back company

Core Insights - Ssense, a Montréal-based fashion retailer, laid off over 200 employees shortly after winning a court ruling to buy back the company and avoid bankruptcy proceedings [1][2][3] Group 1: Layoffs and Court Decision - On February 6, Ssense laid off 169 employees at its Saint-Laurent warehouse and 46 at its Chabanel Street office, citing economic reasons [2] - The layoffs occurred just two days after a Québec judge dismissed a request from Ssense's lenders to force an asset sale, allowing the founders to proceed with a $78 million buyback bid [3] Group 2: Company Background and Financial Struggles - Founded in 2003, Ssense was valued at over $5 billion by 2021, but faced declining sales from 2023 to 2025 due to changing consumer luxury habits and rising interest rates [4] - The situation worsened with the onset of a trade war between the US and Canada in 2025, particularly after the elimination of the de minimis exemption for duty-free shipments under $800 USD [4] Group 3: Bankruptcy and Legal Proceedings - In August 2025, Ssense filed for bankruptcy protection, leading to a legal dispute with lenders including major banks like the Bank of Montreal and JPMorgan Chase [5] - Court filings indicated that Ssense had assets of $387 million against liabilities of $371 million, which included over $135 million in loans and $93 million owed to trade creditors [5] Group 4: Future Plans - As part of their $78 million bid, the Atallah brothers, founders of Ssense, expressed intentions to retain approximately 660 regular employees and 100 occasional, on-call employees [6]