Ssense Reports Over 300 Layoffs in Past Year Amid Bankruptcy Struggles
Montreal-based luxury online retailer Ssense has reported a total of 307 layoffs in the past year, according to filings with the Quebec government. The company, once valued at $5 billion in 2021, has faced significant challenges following the decline of the e-commerce boom post-COVID-19 pandemic.
Recent Layoffs and Bankruptcy Context
In February 2026, Ssense reported over 200 layoffs to the Quebec Ministry of Employment and Social Solidarity, specifically 46 employees at its Chabanel Street office and 169 at its St-Laurent warehouse. This adds to previous reports of 20 layoffs in February 2025 and 72 in May, bringing the cumulative total to 307 over the last twelve months.
The layoffs come as Ssense battles for survival after filing for bankruptcy protection in August. The company's founders, brothers Rami Atallah, Bassel Atallah, and Firas Atallah, have been involved in court hearings to develop a plan to repay debts while continuing operations.
Founder Buyback and Legal Challenges
On February 4, 2026, Quebec's Superior Court approved the founders' bid to buy back the company and regain full ownership, despite opposition from a group of lenders led by BMO. The lenders argued that liquidation would be a safer path to recover the over $113 million owed to them, calling the approved sale "not appropriate, fair, or reasonable" in a contestation notice.
Justice Andres C. Garin, in his judgment, emphasized the social and economic consequences of liquidation, noting that preserving employment was a key factor in allowing the buyout. He stated that under the proposed transaction, a considerable number of employees would retain their jobs, whereas liquidation would lead to significant job losses and broader societal impacts.
Impact on Employees and Future Outlook
The layoffs have affected multiple locations in Montreal, highlighting the ongoing struggles in the luxury fashion sector. Ssense's decline from its peak valuation reflects broader trends in e-commerce adjustments post-pandemic.
As the company moves forward with the buyback plan, it faces the dual challenge of managing debt repayment and stabilizing operations. The recent layoffs underscore the precarious position of the retailer as it seeks to navigate financial restructuring and market pressures.
