Montreal-based online fashion retailer Ssense is undergoing a significant restructuring effort to mitigate the impact of U.S. tariffs and reposition itself for future growth. The company, known for selling high-end and emerging designer apparel, emerged from court-supervised financial restructuring earlier this year after being heavily affected by U.S. trade policies introduced last year.

Ssense, founded over two decades ago by brothers Rami, Bassel, and Moe Atallah, Palestinian immigrants from Syria, had expanded rapidly during the COVID-19 pandemic as online shopping surged. However, the return to pre-pandemic shopping patterns left the company with a substantial inventory overhang, compounding financial pressures. The situation worsened when the U.S. government eliminated the exemption on tariffs for imports valued below US$800, a move that directly increased costs for American consumers and hurt sales on Ssense’s primary market.

Before the change in tariff policy, approximately 60% of Ssense’s customers were based in the United States. Since the tariffs came into effect, that figure dropped to 40%, according to company restructuring documents. The additional costs imposed on U.S. buyers often appeared as extra charges at checkout, diminishing demand. “In terms of the impact on our performance, the tariffs were by far the largest,” said Rami Atallah, the company’s chief executive.

Facing dwindling cash reserves, Ssense filed for creditor protection roughly a year ago. The restructuring saw the company’s workforce shrink from about 1,200 employees to roughly 700, while a combination of the Atallah brothers and Canadian investment firm First Avenue Advisory acquired most of Ssense’s assets for $59 million in cash, assuming $18 million in liabilities.

To adapt to ongoing trade tensions, Ssense plans to open a fulfillment center in the northeastern United States by the first quarter of 2027. This strategic move aims to reduce the tariff burden by warehousing imported goods domestically before final shipment to U.S. customers. By importing inventory at wholesale prices into the U.S., the company can significantly lower duties—a cost Ssense intends to absorb to relieve its customers of additional fees, said company spokesperson Janet Park. Ssense will maintain its Montreal warehouse for international shipments, with its corporate headquarters remaining in Canada.

Despite the restructuring, Ssense continues to face challenges, including restoring trust with designers and suppliers who were owed money during the company’s financial crisis. For example, the London-based fashion label Simone Rocha was reportedly owed more than €200,000. A representative from Simone Rocha confirmed the debt but emphasized confidence in their ongoing relationship with Ssense.

The company is also operating in a highly competitive segment alongside well-established luxury multi-brand retailers such as Net-a-Porter, Mytheresa, Nordstrom, and Saks Global. According to credit and debit card spending data cited by market analysts, U.S. consumer spending on Ssense products fell close to 60% in the first half of 2026 compared to the same period the previous year. Competitors reported stable or increased sales during the same period. However, Ssense disputes these figures and expects to reach profitability by March 2027.

Going forward, Ssense plans to streamline operations by reducing the number of items offered and leveraging artificial intelligence to improve efficiency. The company also aims to launch its own clothing line by the end of 2027 to diversify its product offerings.

While the company seeks to rebuild after a turbulent period, it remains to be seen how effectively its strategies will enable it to navigate ongoing trade challenges and a competitive luxury retail landscape.