More than just an online store, SSENSE is a Montreal-based luxury e-commerce retailer known for high fashion curation, emerging designers, and editorial-driven retail experiences for an international consumer base.[1] However, as a Canadian company whose primary market is the United States, the “weight” of the U.S. tariffs has greatly affected SSENSE’s ability to export its goods.[2] The company laid off “100 employees (8% of its workforce) in May 2025 and became subsequently $371 million CAD in debt.[3] As a result, SSENSE sought bankruptcy protection under Canada’s Companies’ Creditors Arrangement Act (“CCAA”), as confirmed by Chief Executive Officer Rami Atallah.[4] Atallah explained that the decision was ultimately made to safeguard the company’s assets, retain operational control, and position the company to fight for its long-term survival.[5]
Notably, under the CCAA, companies that owe more than $5 million CAD and are unable to pay it can reorganize what they owe under court supervision, while continuing to operate their business.[6] To initiate a CCAA proceeding, the company in question files an “initial application” to the Court.[7] If this application is accepted, the court usually issues the company a 30-day protection from its creditors, thereby allowing the company to prepare a “Plan of Compromise” or “Plan of Arrangement.”[8] Essentially, this proposal outlines how the company intends to deal with its financial issues.[9] Upon approval, the company’s creditors will be paid “in accordance with the terms of the plan.”[10]
Luckily, in September 2025, SSENSE “won court approval to restructure the business,” as it began searching for more refinancing opportunities to pay back the creditors and to stabilize the company.[11] Later, on January 11, 2026, SSENSE’s founding family successfully won their bid to “retain ownership of the company when it emerges from bankruptcy protection.”[12] Assuming court and regulatory approval, the transaction is expected to close by February 13, 2026, and the company will be able to continue with the CCAA process.[13]
Overall, these recent court developments mark a positive turn for SSENSE and the fashion industry as a whole, offsetting earlier concerns from industry leaders who had raised concerns that the company’s collapse would eliminate one of the few remaining platforms dedicated to supporting emerging talent.[14] In particular, there was a fear that smaller brands would lose a critical channel for gaining meaningful visibility and long-term growth.[15] However, SSENSE’s business models, which have in the past “[taken] big bets on young brands,” could look different as it may not be able to make the same gambles anymore because of its recent struggles stemming directly from those exact risky decisions.[16]
From a broader industry perspective, it can be argued that SSENSE increasingly functions less like a traditional retailer and more like a digital gatekeeper within the luxury fashion ecosystem. Several accounts of the restructuring highlight how dependent many brands are on the platform specifically, and how much leverage this single global e-commerce player, dubbed a “lifeline for so many,” can hold over consumers.”[17] Framed this way, the platform seemingly plays a significant role in controlling access to up-and-coming brands seeking international reach, potentially raising questions pertaining to competition law. In this instance, the concern could be that due to SSENSE’s significant influence over an increasingly relevant market for independent brands with limited visibility, access can be molded in ways that disadvantage these smaller designers and potentially impede their ability to compete meaningfully within the larger fashion ecosystem.
While the primary legal lens here focused on Canadian law, a U.S. contrast is useful for legal applications stateside; here, the U.S. equivalent of Canada’s CCAA is the Bankruptcy Code. For example, in January 2026, American company Saks Global Enterprises filed for Chapter 11 bankruptcy after a “missing $100 million interest payment.”[18] Mirroring the CCAA, filing under Chapter 11 of the U.S. Bankruptcy Code allows the debtor to “remain in possession,” continue operation of its business, “borrow new money,” and propose a plan of reorganization.[19] Echoing SSENSE’s restructuring objectives, Saks representatives announced it obtained a refinancing commitment of nearly $2 billion dollars to support their own restructuring.[20]
Relatedly, the United States courts have also addressed competition concerns involving digital platforms that control access within markets. In the 2023 antitrust case United States v. Google LLC, the court addressed allegations that Google violated Section 2 of the Sherman Antitrust Act, which illegalizes monopolies or attempts to monopolize of any part of trade or commerce among the States or nations.[21] The court found that Google’s monopoly within the general search services market did not enhance user experience or incentivize competition, and instead foreclosed a substantial share of the market.[22] This is also a concern that has the potential to arise in the fashion industry if a platform, like SSENSE, were to affirmatively engage in practices that excluded competitors from market access.[23] If a dominant fashion marketplace entered into exclusive agreements with fashion brands, such agreements could foreclose competitors from accessing the same market routes, mirroring Google’s monopolistic behaviors.
Here, however, under the guise of Canadian law, while SSENSE’s restructuring may indirectly reduce market access for some independent designers, bankruptcy itself is not an affirmative act for the purposes of competition law.[24] Accordingly, because the company’s restructuring reflects economic failure rather than strategic market exclusion, it would not, on its own, be legally recognized as liable under competition law.[25]
Seen through the combined lenses of financial restructuring and creative access, as digital platforms grow and become more central to various markets, these concepts become increasingly relevant for analyzing platform power, even if the governing statute and enforcement forums differ across countries. After mid-February, the court-supervised restructuring process of SSENSE is expected to continue, with the founders retaining control of the company while they pursue refinancing options aimed at stabilizing its operations. For now, SSENSE has been given the chance to rehabilitate its business, allowing the company to remain in the market and continue serving as an important channel between creatives and consumers.
[1] Yola Mzizi, Ssense Seeks Bankruptcy Protection as Luxury E-Commerce Falters, The New York Times (Aug. 29, 2025), https://www.nytimes.com/2025/08/29/style/ssense-bankruptcy.html?login=email&auth=login-email.
[2] Maliha Shoaib, Ssense Founders Will Retain Ownership Amid Bankruptcy, Avoiding a Sale, Vogue Business (Jan. 12, 2026), https://www.vogue.com/article/ssense-founders-will-retain-ownership-amid-bankruptcy-avoiding-a-sale?postLoadAction=newsletter; See generally Companies’ Creditors Arrangement Act, R.S.C. (1985, c. C-36), https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/you-are-owed-money/you-are-owed-money-companies-creditors-arrangement-act.
[3] Id.
[4] Retail Woes: A Tracker of Retail Bankruptcies & Brand Closures, The Fashion Law (Jan. 22, 2026), https://www.thefashionlaw.com/retail-woes-a-bankruptcy-timeline/.
[5] Id.
[6] Shoaib, supra note 2.
[7] You are Owed Money – The Companies’ Creditors Arrangement Act, Government of Canada (last visited Feb. 11, 2026), https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/you-are-owed-money/you-are-owed-money-companies-creditors-arrangement-act.
[8] Id.
[9] Id.
[10] Shoaib, supra note 2.
[11] Id.
[12] Id.
[13] Id.
[14] Id.
[15] Id.
[16] Maliha Shoaib & Amy Francombe, The future of Ssense and the fate of indie brands, Vogue Business (Sep. 24, 2025), https://www.vogue.com/article/the-future-of-ssense-and-the-fate-of-indie-brands.
[17] Orla Brennan, SSENSE is a lifeline for young designers. What happens if it shuts down?, The Face (Sep. 9, 2025), https://theface.com/style/ssense-bankruptcy-young-designers-lifeline-e-commerce?.
[18] Eric Revell, Saks to close stores amid bankruptcy proceedings, Fox Business (Feb. 10, 2026), https://www.foxbusiness.com/retail/saks-close-stores-amid-bankruptcy-proceedings.
[19] Chapter 11 Bankruptcy Basics, United States Courts (last visited Feb. 11, 2026), https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics.
[20] Revell, supra note 18.
[21] See generally United States v. Google LLC, 803 F. Supp. 3d 18 (2023); see also 15 U.S.C.S. § 2
[22] Id.
[23] Id.
[24] See generally Competition Act (R.S.C., 1985, c. C-34), https://laws-lois.justice.gc.ca/eng/acts/C-34/section-79.html.
[25] Id.