As per Complex SSENSE is looking to restructure their company in order to avoid going out of business. This week Business of Fashion shared an internal memo shared by the Canadian retailer with their staff. It stated that senior leadership will file an application under the Companies’ Creditors Arrangement Act; which is allows entities to reorganize their finances. CEO Rami Atallah explained the move is a response to creditors wanting to put up SSENSE up for sale and “to protect the company, keep control of our assets and operations, and fight for the future of the company.”
“Recently, we have worked closely with financial and legal advisors to develop our own restructuring plan to stabilize the business and rebuild it for the future,” Atallah added in the internal document. “The court will decide which path we follow, likely within the next week. “Until then, our focus remains clear: protect value, stabilize the business, and set up a restructuring plan to secure our future.”
As per BoF their financial struggles are attributed to several factors including a 10% increase in import tariffs on Canadian goods. “We are here today because the rules of the game have changed,” Attallah said in the memo. “What happens next depends on the ruling of the CCAA proceedings, but our determination is unwavering. Now, more than ever, we need focus and commitment.”
SSENSE will continue to operate as normal with no changes to staff, payroll, benefits or otherwise.
