Montreal-based luxury fashion e-tailer Ssense said it will file for protection under Canada’s Companies’ Creditors Arrangement Act after lenders moved to force a sale of the company, according to an internal memo reviewed by The Business of Fashion. Chief Executive Officer Rami Atallah told employees the court filing, expected within 24 hours, is meant to preserve control of Ssense’s assets while it drafts its own restructuring plan. Atallah said operations will continue and salaries and benefits will be paid during the proceedings. A Canadian court is expected to decide within a week whether the company can pursue its debtor-in-possession plan or face a creditor-led sale. The executive blamed a combination of slowing luxury demand and recent U.S. trade measures for the cash squeeze. Ssense said the imposition of a 25% tariff on Canadian imports and the imminent closure of the US$800 de minimis duty-free threshold “changed the rules of the game,” cutting into margins on its largely cross-border business. Sales fell 28% in the first half of 2025, according to internal figures cited in the memo, after the company had already eliminated more than 100 positions in May. The restructuring is intended to stabilize finances and secure the company’s long-term future, Atallah said.