Summary
Canadian luxury fashion retailer SSENSE plans to file for bankruptcy protection. The company faces financial challenges due to recent U.S. tariff changes, including the removal of a rule that allowed duty-free shipping on low-value parcels.
Key Facts
- SSENSE is a Canadian luxury fashion retailer based in Montreal.
- The company plans to file for creditor protection under Canada's Companies' Creditors Arrangement Act (CCAA).
- SSENSE blames U.S. tariffs and the end of a rule allowing duty-free shipping on packages worth $800 or less for its financial troubles.
- The U.S. decision to drop the de minimis exemption has increased shipping costs for companies like SSENSE.
- President Donald Trump issued an order to remove this shipping exemption last month.
- SSENSE employs about 1,200 people globally and continues to operate normally, including paying employee salaries.
- The company was valued at $4 billion in 2021 by Sequoia Capital.
- SSENSE's primary lender has moved to sell the company without its agreement, prompting the bankruptcy protection action.
