Toronto, August 30(HS): Montreal-based luxury fashion retailer SSENSE has announced plans to file for bankruptcy protection, citing increased trade pressures and tighter liquidity exacerbated by the recent US suspension of the de minimis exemption on low-value shipments. CEO Rami Atallah revealed the company's liquidity crisis was triggered largely by the elimination of duty-free shipping for parcels valued under $800 destined for the US, a move enacted last month under an executive order by former President Donald Trump.

SSENSE, a prominent global e-commerce player founded in 2003 and valued at $4 billion in 2021, faces mounting challenges as US tariffs impose additional costs on Canadian and international shipments. The suspension of the longstanding exemption — originally established in 1938 to avoid costly collection of minimal duties — has disrupted cross-border retail flows, compelling SSENSE to seek protection under Canada’s Companies’ Creditors Arrangement Act (CCAA) to restructure and safeguard operations.

While SSENSE intends to maintain normal business activities and employee salaries during restructuring, the situation highlights the vulnerability of major retailers to evolving trade policies. Industry experts note the combination of inflation-driven luxury market slowdowns and punitive tariff measures are significantly reshaping North American retail landscapes. The company also cited lender-initiated sale actions without its consent as a catalyst for the filing.

This development underscores broader economic repercussions from US tariff realignments affecting numerous Canadian and global businesses dependent on access to the lucrative American consumer market.

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Hindusthan Samachar / Jun Sarkar