Online retailer Ssense filing for bankruptcy protection
Montreal-based online fashion retailer Ssense facing bankruptcy protection
It has been reported that Ssense, a popular online fashion retailer based in Montreal, is planning to file for bankruptcy protection as its primary lender is attempting to force a sale of the company. According to a spokesperson from Ssense, the company’s primary lender has placed Ssense under the Companies’ Creditors Arrangement Act (CCAA) protection to initiate a sale.
Ssense has stated that the lender made this move without the company’s consent. The lenders involved in this decision include Bank of Montreal, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia (Scotiabank), and JPMorgan Chase & Co. While BMO declined to comment, CBC News is awaiting responses from the other lenders.
In response to this development, Ssense plans to file its own CCAA application in order to protect the company, maintain control of its assets and operations, and ensure a strong future for the business. This process will allow Ssense to restructure on its own terms and emerge stronger in the long run.
This news comes at a challenging time for Canadian retailers, with Hudson’s Bay and Frank & Oak closing their doors earlier this year. Ssense has attributed some of its struggles to factors such as U.S. President Donald Trump’s trade directives, which have impacted Canadian retailers with American consumers.
Challenges in the retail industry
Lisa Hutcheson, a retail strategist at J.C. Williams Group, highlighted the various challenges faced by retailers in the current market. Factors such as competition from global e-commerce players, softening demand for luxury brands, and changing shopping preferences among younger generations have all contributed to the difficulties faced by companies like Ssense.
Despite these challenges, there is hope for Ssense to overcome its current situation by repositioning itself in the market. The company will need to adapt to the changing landscape and find ways to differentiate itself in order to thrive in the future.
Business of Fashion was the first to report on the Ssense bankruptcy protection news, shedding light on the challenges faced by the online retailer.
Stay tuned for more updates on Ssense’s bankruptcy protection filing and the company’s plans for financial restructuring.
