Montreal’s Fashion Giant Ssense Files for Bankruptcy Protection: What Went Wrong?
Montreal-based luxury fashion retailer Ssense has filed for bankruptcy protection, sending shockwaves through Canada’s high-end retail landscape. The company, once valued at $5 billion and considered one of Montreal’s most successful startups, submitted its filing under the Companies’ Creditors Arrangement Act (CCAA) on Tuesday.
Court documents reveal Ssense is drowning in debt, with outstanding obligations exceeding $62 million. The company owes a staggering $25 million to suppliers and vendors, $17 million to its bank, and $5 million to its landlord for its flagship Montreal store. An additional $15 million in debt is tied to various other creditors.
“The retail market has experienced significant volatility post-pandemic,” said insolvency trustee Jean-Daniel Breton, who is overseeing the case. “Luxury retailers like Ssense were particularly vulnerable to changing consumer spending habits and the aggressive discounting we’ve seen across the industry.”
Founded in 2003 by three brothers—Rami, Firas and Bassel Atallah—Ssense built its reputation by offering cutting-edge designer brands and cultivating a devoted following among fashion-forward millennials. The company’s ascent reached its peak in 2021 when Japanese investment firm Sequoia Capital valued it at $5 billion during a funding round.
Industry analysts point to several factors behind Ssense’s downfall. The company’s aggressive expansion during the pandemic e-commerce boom proved unsustainable as consumers returned to physical shopping. Simultaneously, inflation pushed many customers to prioritize essentials over luxury goods.
“This isn’t just about Ssense—it’s a canary in the coal mine for the broader luxury retail sector,” said retail analyst Madison Chen. “When a company this sophisticated and well-funded struggles, it signals deeper market challenges.”
The bankruptcy protection filing buys Ssense time to restructure while maintaining operations. The company has secured $10 million in interim financing to continue paying employees and critical suppliers while working through its financial challenges.
For Montreal’s fashion scene, Ssense’s troubles represent a significant blow. The company employed over 600 people and operated a major distribution center in the city’s Saint-Henri neighborhood. Its flagship store on Saint-Laurent Boulevard has been a destination for fashion enthusiasts since 2011.
“Ssense helped put Montreal on the map as a global fashion hub,” said François Roberge, CEO of Montreal-based clothing retailer La Vie en Rose. “Their struggles reflect the extraordinary challenges retailers face in today’s market.”
The bankruptcy filing comes amid a broader retail downturn that has claimed several major Canadian chains in recent years. Luxury department store Holt Renfrew closed locations in Edmonton and Quebec City, while mass-market retailers like Bed Bath & Beyond Canada and Bentley Leathers filed for bankruptcy protection.
As Ssense navigates its restructuring, the company’s future remains uncertain. Court documents indicate management is exploring several options, including potential sale, additional investment, or significant operational changes to restore profitability.
Will this once-celebrated Montreal success story find a path forward, or will it join the growing list of retail casualties? For Canada’s fashion industry and Montreal’s identity as a style capital, the stakes couldn’t be higher.
For more retail analysis, visit CO24 Business or check CO24 Breaking News for updates on this developing story.
