The Montreal fashion retailer has issued a stay order as creditors push for a court-supervised sale.
Struggling Montreal-based online fashion retailer Ssense has been granted a stay of proceedings, temporarily protecting the company from creditors as it tries to prevent potential sale.
The temporary shield is based on a creditor protection application filed by Ssense's creditors, which include Bank of Montreal, Royal Bank of Canada, Scotiabank, National Bank of Canada and JPMorgan Chase. This news was first reported Logics and has been independently verified by BetaKit.
The stay of proceedings prevents creditors from taking debt collection actions against Ssense for an initial period of 10 days.
On August 29, Ssense reported that its main creditor had applied to place the company under the protection of the Companies' Creditors' Agreement (CCAA) without its consent, intending to force a quick sale. The CCAA allows large companies with more than $5 million in debt to undergo court-supervised restructuring.
A stay of proceedings prevents creditors from taking debt collection actions against the company or its assets for an initial period of 10 days. You can apply for an extension, but once the stay expires, the company may be subject to receivership or bankruptcy. Ssense declined to comment on whether the company plans to extend its stay.
The moratorium also temporarily protects Ssense from having to pay designers, who are technically creditors. Some independent designers who sell through the Ssense platform told The Montreal Gazette that they have didn't pay for shipments shipped several months earlier. Some Canadian designers taken from social networks share similar experiences.
According to BloombergSsense owes its creditors approximately $145 million. They want the retailer to be regulated as outlined in the CCAA. Bloomberg reported that these lenders have set an Oct. 6 deadline for non-binding offers.
Ssense told employees it plans to file its own application under the CCAA to “protect” the brand and intellectual property from sale. The company said it had been working with creditors for months to restructure the business as it navigated economic headwinds, including rising costs due to the elimination of a key U.S. shipping exemption. At the time, the company said it was “deeply disappointed” by creditors’ decision to move forward with the bid and potential sale.
CONNECTED: Ssense seeks to 'protect' the company from a potential sale through creditor protection
Ssense told staff it planned to file a competing application on August 28, but the Office of the Canadian Bankruptcy Trustee confirmed to BetaKit that Ssense has not yet filed an application under the CCAA. CEO Rami Atallah reportedly said The memo to employees said that Ssense had developed its own restructuring plan and that further actions would be decided by the court.
While the investigation continues, independent designers who sell through the Ssense platform told The Montreal Gazette that they don't pay for shipments shipped several months earlier. Some Canadian designers taken from social networks share similar experiences.
Founded by brothers Rami, Firas and Basel Atallah in 2003, Ssense is an e-commerce retailer specializing in designer fashion and luxury streetwear. The company also creates editorial content highlighting its retailers' offerings.
Ssense moved closer to bankruptcy in response to U.S. trade policy and economic uncertainty that has dampened demand for luxury fashion. According to BloombergSsense reported that as of June 30, it had liabilities of $517 million and assets of $420 million. The company attributed some of its financial problems to the elimination of a de minimis exemption that allowed low-value packages to enter the United States duty-free.
Luxury multi-brand platforms represented the worst-performing retail category in 2025, with sales down more than 20 percent year-over-year, according to the study. report from marketing agency Consumer Edge. The report details that Ssense lost market share among high-income shoppers but gained slightly among the 18-24 age group.
Update (9/9/25): This story has been updated to clarify what a stay of proceedings does for Ssense.
Image courtesy of Ssense.
