Montreal-based fashion e-tailer Ssense is filing for bankruptcy protection as its lenders attempt to force a sale of the business amid adverse impact from the US tariff policy.

In a letter to employees reviewed by the Business of Fashion, Ssense CEO Rami Atallah said creditors want to put the company up for sale under the Companies’ Creditors Arrangement Act (ACCC), a bankruptcy protection process similar to Chapter 11.

Management now plans to “fight for the company’s future” by filing its own CCAA application within 24 hours to “protect the company” and keep control of its assets and operations.

Atallah said the company has been working with financial and legal advisors to develop its own restructuring plan, adding that the court will decide which path the company should take within the next week.

Founded in 2003 by brothers Firas, Rami and Bassel Atallah, Ssense sells designer fashion and high-end streetwear from multiple brands on its e-commerce platform.

The company has struggled with falling sales amid a luxury slowdown over the past year. The Trump administration’s trade policies, which impose 25 per cent tariffs on goods imported from Canada, was the latest blow.

The closure of the “de minimus”, which allowed packages worth less than $800 to enter the US duty-free, also came as a “surprise” to Ssense and directly contributed to its CCAA application, Atallah said.

The company is expected to continue operating as usual until further notice.