Canadian E-Tailer Ssense, Under Trump Tariff Strain, Files For Bankruptcy

Canada's Ssense, a leading e-commerce platform for luxury fashion clothing and accessories, announced on Thursday that it has filed for bankruptcy protection due to business disruptions caused by U.S. tariffs, according to a report in the fashion news site Vogue.

Canada faces a 35% tariff on goods shipped into the U. S., with some exemptions. And now, with the de minimis exemption on low-value Canadian goods set to expire, retailers, in particular, are facing steep costs for importing to the U.S.

The development is the latest indication of how U.S. President Donald Trump's tariffs are disrupting businesses globally, particularly the small ones operating in niche categories.

Italian retailer Luisaviaroma filed for bankruptcy earlier this month, citing macroeconomic headwinds, including the luxury slowdown, U.S. tariffs, and increasing transportation costs, as well as missteps in its own strategy.

Ssense attributed the bankruptcy filing directly to higher costs incurred due to the U.S. tariff policy; however, Ssense's primary lender placed the company under Canada's Companies' Creditors Arrangement Act (CCAA) protection, triggering a sales process "without our consent", according to a Ssense spokesperson.

"We are deeply disappointed in this decision, which we believe does not serve the long-term interests of our 1,000+ employees, vendors, and partners," the spokesperson told Vogue.

"We will be filing our own CCAA application to safeguard the company, retain control of our assets and operations, and fight for the future of this business."

Ssense laid off 8% of its workforce, or about 100 employees, in May.

If Ssense were to fail, it would be another blow to fashion's independent designer brands, many of whom rely on Ssense as a retail partner, according to Vogue.

Founded in 2003, Ssense curates high-end designer clothing, streetwear, and accessories, and blends retail with editorial content. It has a lone flagship store in Montreal, Quebec, which opened in 2018.

So far this year, the iShares MSCI Canada ETF (EWC), which tracks Canadian companies listed in the U.S., has gained 20%, nearly twice the gains in the SPDR S & P 500 ETF (SPY).

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