Canadian fashion retailer Ssense has filed for bankruptcy protection, blaming soaring tariffs tied to the escalating global trade war.
The Montreal-based company submitted its application on Thursday, August 28, under Canada’s Companies’ Creditors Arrangement Act (CCAA), which is similar to Chapter 11 bankruptcy in the United States. The CCAA allows businesses owing more than $5 million to restructure their debts while continuing operations.
According to Ssense, the move wasn’t entirely voluntary. A company spokesperson said its primary lender forced the filing, putting Ssense under CCAA protection and launching a sales process “without our consent.”
The retailer has struggled under U.S. trade policies introduced earlier this year. On August 1, tariffs on Canadian goods entering the U.S. jumped to 35 percent. That’s higher than the current rates on imports from Mexico (25 percent) and China (30 percent).
Adding to the blow, the so-called de minimis loophole which had allowed packages under $800 to enter the U.S. duty-free closes this Friday. Once it does, even small orders from Canadian retailers will face extra costs.
The double hit of higher tariffs and the end of duty-free shopping has sparked frustration among Ssense customers, especially those who have long relied on its popular biannual sales for discounted designer fashion.
